automotive business plan

Table of Contents

Complete Guide on Auto Repair Shop Business Plan (2023)

Success in the auto repair business starts with a good plan. Your shop’s future depends on it. One mistake can be a big problem. That’s why you need to make sure you have everything in place for a successful auto repair business.

In this blog, we’ll help you create a strong business plan for an auto repair shop, whether you’re starting out or already have a shop. We’ll also give you a business plan sample for an auto repair shop that you can use. 

Let’s get started!”

Looking to expand your auto repair shop? Schedule a demo now.

What is an auto repair shop business plan? 

An auto repair shop business plan is like a roadmap for your car repair business. It’s a document that explains your business idea to potential investors or partners.

Imagine you’re planning a long road trip. 

Before you start, you make a detailed plan with the places you want to visit, the things you want to do, and the route you’ll take. 

Similarly, an auto repair shop business plan is like that plan for your car repair business. It’s a written guide that outlines what your business wants to achieve, how it will do it, and why it’s a good idea. 

You use this plan to show to others, like investors, so they understand your business and may want to be part of it. It’s like the master plan for your car repair adventure!

Why you need a business plan for auto repair shop: 

You will understand your business better:.

• Your business plan is your GPS. It gives you a clear route to your goals.
• Identify and tackle obstacles with confidence by sticking to your plan.
• It’s your guide for financing, hiring, operations, and branding.

It will give you a Smooth Driving:

• Prevent hiccups by investing wisely.
• Your business plan helps you choose the right people, processes, technology, and marketing.
• Ensure your investments align with your long-term goals.

Make your business sustainable: 

• Map out a sustainable and viable business model.
• Secure funding, plan expansion, and achieve growth milestones.

It will give you Clear Path:

• Engage in a regular enjoyable activity.
• Form habits that help you focus and organize thoughts.
• Find solitude to regain focus on business goals.
• Personalize your approach for clarity and success.

Creating an auto repair shop business plan: 

Understanding the basics.

It is important that you first clever the basics before you create a business plan. 

For that, you need to understand the type of your business. There are many types of business such as startup business plan, internal business plan, and strategies plan.

For an auto body repair shop business plan, you need to form some key elements in your company such as market, company description, sales strategies, management, product/service, fundings, financial projections. Etc. 

Company Description: 

This chapter is the heart of your business plan. Here you will tell your story. Why do you want to start an auto repair business? What is the mission behind it? You will explain your services. 

This is your chance to give a unique identity to your repair shop. This can help you gain competitive advantage. Let’s discuss these things one by one: 

Overview: 

Give your readers a sense of what your auto repair shop is all about. You can tell the essence of your shop here. You need to discuss the history of your business, founders; story, and company culture, 

Mission Statement: 

Articulate the core purpose of your business – what it aims to achieve and how it serves its customers or clients.

Vision Statement: 

Describe the future you envision for your company. What impact do you want to have on your industry, community, or the world?

Products or Services

Now discuss what you are offering. Describe your services that show a unique value proposition. It is important that it is relevant to your auto repair customers. 

Market Positioning

Marketing and branding is very important to have a successful auto repair business. Focusing on market positioning is crucial. You need to touch on points like target audience, competitive advantage and market niche. 

Short-Term Goals: 

These could include milestones like launching a new product, reaching a specific revenue target, or expanding your customer base.

Long-Term Goals: 

Detail your overarching aspirations, such as becoming an industry leader, expanding globally, or achieving a certain level of market share.

Market Analysis

You need to know what you are dealing with on a daily basis. 

What do your ideal customers want? What is trending in the market? How can you attract more and more customers? 

For this, you need to have a comprehensive knowledge of the auto repair market. There are three things you need to cover: 

Target Market: 

Understand your audience. Check out the following things in your customers: 

• Income level 
• Values 
• Lifestyles 
• Purchasing behaviors

Address the market needs: 

You need to find out the needs of your market. Identify the pain points of your customers.

Pro tip: you can conduct surveys or focus groups to find out the pain points of your target audience. 

After finding out the paint points, come up with unique selling point that covers the needs of your market. Clearly articulate how your products or services stand out and provide distinct advantages over competitors.

Analyzing the Competitive Landscape: 

In every market, competition is a reality. By analyzing your competitors, you gain insights into their strengths, weaknesses, and strategies. Find out direct competitors that offer similar services. 

After finding your competitors, you can set your business apart by offering better services from them. 

Market Size and Growth Potential

Assessing the overall market size and growth potential provides a snapshot of the opportunity at hand. It helps you understand the scope of your market and whether it’s expanding or contracting.

Industry Trends: 

Now you need to collect data related to auto repair shops. This can help you in finding industry trends. Find out the merging technologies that you can use in your shop. 

Marketing and Sales Strategies

Now we know our services and market for the auto repair shop. But how are we gonna sell our service to the market

That’s here, you need marketing strategies for your auto repair shops. Follow the following steps to define your strategies: 

• Identify the platforms you’ll use to reach your audience. 
• Craft a consistent and compelling message that resonates with your target audience.
• Plan the creation and distribution of valuable content that educates, entertains, or solves problems for your audience. 
• Detail how you’ll guide potential customers through the sales journey, from initial contact to making a purchase.
• Explain how you’ll attract potential customers.
• Describe how you’ll build relationships with leads over time. 
• Outline the steps you’ll take to convert leads into paying customers. 
• Allocate funds to different marketing strategies
• Explain how you’ll measure the effectiveness of your marketing and sales efforts.
• Identify the KPIs you’ll monitor, such as website traffic, conversion rates, click-through rates, and customer acquisition cost.

Organization and Management

Now, you need to discuss the management of your auto repair shop. Highlighting key team members and explaining their roles adds depth and credibility to your business plan.you can discuss the following things: 

• Organizational Structure
• Hierarchical Chart.
• Functional Divisions
• Key Management Team
• Founder(s) and CEO
• Executive Team Members
• Responsibilities and Roles
• Founder’s Role
• Key Executives’ Roles
• Team Strengths and Expertise
• Relevant Experience
• Growth Plans
• Recruitment Strategy

Product or Service Line

In this chapter, you’ll provide a thorough exploration of your products or services. You can discuss the following things: 

• Introduction to Your Offerings
• Detailed Description
• Development and Design
• Intellectual Property
• Product Life Cycle
• Future Development
• Visuals and Media
• Customer Testimonials and Case Studies
• Pricing Strategy
• Regulatory and Compliance
• Sustainability and Ethics

Financial Projections

In this chapter, you will do a proper financial analysis. You will discuss the financial dynamics of your business. 

1. Profit and Loss: 

In this, you will show projected profit and loss for the forecast period. Below is an example from the business plan for an existing auto repair shop. you can use it to make your own a profit and loss sheet. 

2.Cash flow projection: The next thing is the cash flow projection. Cash flow is critical for business sustainability. Illustrate how cash moves in and out of your business, highlighting periods of potential cash shortages and surpluses. This helps in planning for working capital needs and managing liquidity. Below is an example that you can use:

3. Balance Sheet Projection

Provide a snapshot of your business’s financial position, including assets, liabilities, and equity. This showcases the overall health and stability of your business.

4. Break Even Analysis

Determine the point at which your business becomes profitable. A breakeven analysis helps you understand how much revenue you need to cover all costs. Below is an example of a business plan for an existing auto repair shop. You can see to understand better.

Risk Assessment and Contingency Planning

No business journey is without its obstacles. Recognizing potential risks and challenges upfront and having a plan to address them is crucial. 

This chapter focuses on identifying risks, evaluating their potential impact, and outlining strategies to mitigate their effects.

First thing is to identify the risk. You can see the picture below to identify risks. 

After identifying risks, you need to come with risk mitigation strategies such as: 

Preventive Measures: Outline steps you’ll take to prevent risks from occurring. 

Mitigation Plans: Describe your plans to minimize the impact if a risk does materialize. 

Crafting a business plan is a labor of love. It’s more than a document; it’s your business’s roadmap to success. Each chapter contributes to the bigger picture, forming a comprehensive strategy that aligns your ambitions with actionable steps. Now that you have this guide, take the first step towards creating a winning business plan that paves the way for your entrepreneurial journey.

You can also take your auto repair business to the next level with a good auto repair management software. Moreover , torque 360 offers all-round automotive management software as well. It includes many features such as scheduling, invoicing , estimating , digital vehicle inspection , repair order management , technician portal , POS integration , and marketing solutions. 

About the Author: Torque360

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Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

Over the past 20+ years, we have helped over 4,000 entrepreneurs create business plans to start and grow their car dealerships. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a car dealership business plan template step-by-step so you can create your plan today.

Download our Ultimate Car Dealership Business Plan Template here >

What Is a Car Dealership Business Plan?

A business plan provides a snapshot of your car dealership as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Car Dealership

If you’re looking to start a car dealership or grow your existing car dealership you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your car dealership in order to improve your chances of success. Your car dealership business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Car Dealership Businesses

With regards to funding, the main sources of funding for a car dealership are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a car dealership is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of car dealership you are operating and the status; for example, are you a startup, do you have a car dealership that you would like to grow, or are you operating a chain of car dealerships.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the car dealership industry. Discuss the type of car dealership you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of car dealership you are operating.

For example, you might operate one of the following types:

• New Car Dealers : this type of car dealership business typically sells both new and used passenger vehicles. Usually, this type of dealership also has a service department and also sells parts.
• Used Car Dealership : this type of car dealership sells used passenger vehicles, including cars, light trucks, sports utility vehicles (SUVs) and passenger vans.
• Online Car Dealership : this type of car dealership retails automobiles online to consumers and businesses and provides services to aid in the purchase of automobiles. Some players offer their customers trade-in, car financing and car selling services.

In addition to explaining the type of car dealership you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the car dealership business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the car dealership industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards vehicles, it would be helpful to ensure your plan calls for plenty of options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your car dealership business plan:

• How big is the car dealership business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your car dealership. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your car dealership business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, soccer moms, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of car dealership you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than college students.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most car dealerships primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other car dealerships.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This primarily includes private sellers. You need to mention such competition to show you understand that not everyone in the market for a car shops at a dealership.

With regards to direct competition, you want to detail the other car dealerships with which you compete. Most likely, your direct competitors will be car dealerships located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of automobiles do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products and/or services?
• Will you provide cars that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car dealership business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of car dealership that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling new cars, will you offer leasing options?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the inventory you will maintain and the price ranges.

Place : Place refers to the location of your car dealership. Document your location and mention how the location will impact your success. For example, is your car dealership located next to a high-traffic retail area, or on a main thoroughfare, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your car dealership marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your car dealership extra appealing to attract passing customers
• Pay per click advertising
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Social media advertising
• Local radio advertising
• Banner ads at local venues

Building Trust

Building trust between a car dealer and its customers is vital to a successful sales strategy. This should be clear in the business plan, where funders look to see the feasibility of the company once it’s launched. Earning customer trust is important because of the bad reputation, deserved or not, for car salespeople to try to take advantage of customers and because of the high amount of stress which the purchase of a large item like a car causes for buyers.

Below are the best ways to build trust in your customers.

Referrals and Testimonials

Running a dealership with a heavy focus on satisfied customers referring other potential customers can create positive word-of-mouth between contacts who already know and trust each other. An additional element to this is securing testimonial statements (either written or videotaped) from happy customers. This requires having those happy customers in the first place, as customers can sense if the testimonials are canned and will mistrust even further.

Transparency

If auto dealerships were extremely clear about all pricing, fees, and costs of ownership up front, customers might change their opinion of these companies. However, too often there is a great focus on a low sticker price to attract customers who later on feel they’ve been lied to when all of the add-on charges are explained. Can your dealership change this industry practice and make transparency into a competitive advantage?

Taking Your Time

By taking the sales process at a rate that the customer is comfortable with, you recognize that it is a difficult step for customers to walk into the world of the dealer and play on his home turf, so to speak. They will be feeling defensive and a bit thrown off, so tell them that you will take the time to answer any questions they have and to make sure they understand and have considered their options before moving forward.

Operations Plan

While the earlier sections of your car sales business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your car dealership such as serving customers, completing necessary paperwork, keeping the dealership clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your car dealership’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the car dealership business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in car dealerships and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per week or 75? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your car dealership, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $1,000,000 fleet order, that would cost you $500,000 to fulfill. Well, in most cases, you would have to pay that $500,000 now for inventory, transportation, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets, be sure to include several of the key costs needed in starting or growing a car dealership:

• Location build-out including design fees, construction, etc.
• Cost of equipment like computer hardware and software, etc.
• Cost of maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Car Dealership Business Plan Summary

Putting together a business plan for your car dealership is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the car dealership business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful car dealership business.

Car Dealership Business Plan PDF

You can download our car dealership business plan PDF here or use our sample car dealership business plan to help you get started on your own business plan.

For the quickest and easiest way to complete your business plan, Growthink’s Ultimate Car Dealership Business Plan Template has numerous features not available in the free template including automated financial projections which calculate your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

Don’t you wish there was a faster, easier way to finish your Car Dealership business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Automotive Business Plan Articles & Templates

Car Dealership Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful car dealership. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your car dealership’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a car dealership business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your car dealership business concept into reality. Let’s dive in!

Our car dealership business plan is meticulously organized to encompass all key components necessary for a comprehensive strategic framework. It details our dealership’s operations, marketing strategies , market environment, competitors, leadership team, and financial outlook.

• Executive Summary : Offers an overview of your Car Dealership’s business concept, including the range of new and pre-owned vehicles, market analysis , management team, and financial strategy.
• Car Dealership & Location: Describes the dealership’s prime location, accessibility, and facility features, including the showroom and service area.
• Vehicles & Rates: Lists the types of vehicles offered, from economical compact cars to luxury SUVs, including pricing and financing options.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the car dealership market.
• Key Trends: Highlights recent trends affecting the car dealership sector, such as the surge in Electric Vehicle (EV) sales and the shift towards Built-to-Order sales.
• Key Competitors : Analyzes main competitors in the area and how your dealership differentiates itself, focusing on vehicle selection, customer service, and additional services like maintenance and repairs.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis tailored to the car dealership business.
• Marketing Plan : Strategies for promoting your dealership and attracting customers, including online presence, targeted promotional campaigns, and community engagement.
• Timeline : Key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the Car Dealership, detailing their roles, experience in the automotive industry, and business management.
• Financial Plan: Projects the dealership’s 5-year financial performance, including revenue from vehicle sales, profit and loss statements, cash flow analysis, and balance sheet.

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Car Dealership Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

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Executive Summary

The Executive Summary introduces your car dealership’s business plan, providing a succinct overview of your dealership and its offerings. It should describe your market positioning, the range of vehicles you offer—including new and pre-owned cars, financing options, and after-sales services—its location, size, and an overview of daily operations.

This section should also delve into how your car dealership will establish itself within the local market, including the number of direct competitors in the area, identifying who they are, along with your dealership’s unique selling points that set it apart from these competitors.

Moreover, you should include information about the management and founding team, detailing their roles and contributions to the dealership’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included here to provide a clear picture of your dealership’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Car Dealership, the Business Overview section can be effectively divided into 2 main categories:

Car Dealership & Location

Describe the dealership’s physical setup, focusing on its design, layout, and overall ambiance that welcomes customers. Mention features such as the showroom’s size, the display arrangement of vehicles, and any customer-friendly areas like waiting lounges or consultation spaces. Next, highlight the dealership’s location, emphasizing its accessibility and the convenience it offers to customers, such as proximity to major roads or highways and the ease of parking. Also, explain why this location is strategically chosen to attract your target customer base, considering factors like local traffic flow, visibility, and the presence of nearby complementary businesses.

Vehicles & Rates

Detail the variety of vehicles offered, including new and pre-owned models, different brands, and vehicle types (such as sedans, SUVs, trucks, and electric vehicles). Emphasize any unique or highly sought-after models that could attract customers. Outline your pricing strategy for the vehicles, ensuring it reflects the value offered and aligns with the market segment you’re targeting. Discuss any financing options, leasing deals, or special promotions that make purchasing more accessible and appealing to customers.

Make sure to cover here _ Car Dealership & Location _ Vehicles & Rates

Market Overview

Industry size & growth.

In the Market Overview of your car dealership business plan, begin by analyzing the size of the automotive industry and its growth potential. This examination is essential for grasping the market’s breadth and pinpointing opportunities for expansion.

Key Market Trends

Next, delve into current market trends , such as the growing consumer interest in electric and hybrid vehicles, advanced safety features, and digital sales platforms. Highlight the demand for vehicles that cater to evolving lifestyle needs and environmental concerns, along with the shift towards online purchasing and personalized buying experiences.

Key Competitors

Finally, assess the competitive landscape, which spans from luxury car dealerships to budget-friendly lots, as well as online car sales platforms. Focus on what sets your dealership apart, whether it’s through superior customer service, a diverse inventory, or expertise in specific types of vehicles. This section will clarify the demand for automotive sales services, the competitive setting, and how your dealership is poised to succeed in this dynamic industry.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

Begin with a SWOT analysis for the car dealership , identifying Strengths (such as a diverse vehicle inventory and strong customer service), Weaknesses (like limited market presence or competitive pressure), Opportunities (for instance, the growing demand for electric vehicles and online sales channels ), and Threats (such as economic fluctuations affecting consumer spending on big-ticket items).

Marketing Plan

Then, craft a marketing plan that details strategies to attract and retain customers through targeted advertising campaigns, promotional financing offers, a dynamic online presence, and community engagement events.

Lastly, establish a comprehensive timeline that marks key milestones for the dealership’s launch, marketing initiatives, customer base development, and growth goals, ensuring the business progresses with clarity and focus.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the car dealership business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the car dealership toward its financial and operational goals.

For your car dealership business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your car dealership’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs , and capital expenditures.

For your car dealership business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Auto Repair Business Plan Template & Guidebook

If you're starting a new auto repair business, a detailed and comprehensive business plan is essential. Many entrepreneurs know they need a business plan, but don't have the time or know-how to craft one on their own. The #1 Auto Repair Business Plan Template & Guidebook provides an easy-to-use template and guidebook that offers all the information needed to create a successful plan while minimizing the time and effort required. With this powerful tool, new auto repair business owners have access to expert advice every step of the way to ensure their success.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Auto Repair Business [11 Steps]
• 25 Catchy Auto Repair Business Names:
• List of the Best Marketing Ideas For Your Auto Repair Service:

How to Write a Auto Repair Business Plan in 7 Steps:

1. describe the purpose of your auto repair business..

The first step to writing your business plan is to describe the purpose of your auto repair business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a auto repair business:

The mission of our Auto Repair business is to provide quality, reliable, and fairly priced auto repair services to our community while creating a positive and comfortable professional environment for staff and customers alike. We strive to foster long-term relationships with each person we serve, so we can continue to be their go-to auto repair resource for years to come.

2. Products & Services Offered by Your Auto Repair Business.

The next step is to outline your products and services for your auto repair business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your auto repair business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your auto repair business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your auto repair business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a auto repair business?

• Diagnostic and Repair Tools
• Computer Software
• Business License/Permits
• Insurance Coverage

5. Management & Organization of Your Auto Repair Business.

The second part of your auto repair business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your auto repair business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Auto Repair Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a auto repair business varies based on many different variables, but below are a few different types of startup costs for a auto repair business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your auto repair business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your auto repair business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your auto repair business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Auto Repair Business Plans:

Why do you need a business plan for a auto repair business.

A business plan for an auto repair business provides a roadmap of the business’s current and future operations. It outlines the necessary information to achieve success, including the market analysis, organizational structure, financial projections, marketing strategy, and operational plans. By developing a comprehensive plan for your auto repair business, you can set goals, track progress, and make changes to ensure that you are staying on track to reach your desired results.

Who should you ask for help with your auto repair business plan?

You should ask a business consultant, mentor, or financial planner for help with your auto repair business plan. Additionally, you can find resources online such as templates and sample business plans to help you structure your business plan.

Can you write a auto repair business plan yourself?

Yes, it is possible to write an auto repair business plan yourself. Writing a business plan can require a lot of research and strategizing, but it can be done with the right preparation and knowledge. When writing a business plan for an auto repair business, you should include an executive summary that outlines your overall vision for the business, as well as any key objectives; a market analysis to define your target audience and consider the potential competitors in the area; a description of your services and pricing; a risk analysis for potential threats; financial projections for initial investments, overhead costs, and revenue forecasts; a description of any required labor or equipment; and finally, an action plan that details how you will implement your strategy.

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Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Auto Repair Shop Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Are you about starting an auto repair shop ? If YES, here is a complete sample auto repair shop business plan template & feasibility report you can use for FREE .

All over the globe, the auto repair business is such that is important. This is because of the need to have cars fixed.  Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the auto repair garage is one of them.

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All over the world, car repairs is one business that never goes into extinction. This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable.

As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.

People visit auto garages for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars. For whatever reasons; auto repair garage will always translate to money for the owner of the repair garage.

A Sample Auto Repair Shop Business Plan Template

1. industry overview.

Auto repair business is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur can successfully start.

The Auto Repair Shop industry provides mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

It is important to state that the auto repair shop industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair

The Auto Repair Shop industry is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.

The Auto Repair Shop industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth. Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.

Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Statistics has it that the Auto Repair Shop industry in the united states of America, is worth $58bn, with an estimated growth rate of 1.4 percent. There are about 251,016 registered and licensed auto repair garages in the United States and they are responsible for employing about 530,978 people.

Over and above, the auto repair shop industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own auto repair business and of course make good money from the industry.

2. Executive Summary

Jack & James Auto Garage®, LLC is a U.S based and licensed auto repair garage. We have been able to secure a standard and well – positioned garage facility in a central and busy district in Fairhope – Alabama.

We are an auto repair services company that is set to compete in the highly competitive and fragmented auto repair and maintenance services industry not only in Fairhope – Alabama, but also throughout the United States market because we intend opening our outlets in key cities across the United States.

Jack & James Auto Garage®, LLC will offers services such as mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al.

Our business goal is to become one of the leading auto repair garages in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

Our workers are going to be selected from a pool of certified and highly experienced auto repair engineers and technicians in and around Fairhope – Alabama and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading auto repair garages and services centers in the United States and throughout the globe.

At Jack & James Auto Garage®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Jack & James Auto Garage®, LLC is founded by Engr. Jack Romney an auto mechanical engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his twin brother and business partner for many years James Romney.

They have a combine experience that can help them build Jack & James Auto Garage®, LLC to favorably compete with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

3. Our Products and Services

Jack & James Auto Garage®, LLC was established with the aim of maximizing profits in the auto repair shop industry. We want to compete favorably with the leading auto garages in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, services and maintenance carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Jack & James Auto Garage®, LLC is not just accepted in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages. Our products and services are listed below;

• Repairing and replacing automotive engines
• Performing general automotive repairs
• Power train repair services
• Brake repair services
• Scheduled and preventative repair and maintenance services
• Repairing trucks
• Repairing and replacing automotive exhaust systems
• Repairing and replacing mufflers
• Repairing automotive transmissions
• Repairing automotive brakes
• Performing automotive electric repairs
• Performing automotive wheel alignments
• Repairing automotive radiators
• Wheel alignment and repair services
• Other repair and maintenance services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class auto repair garage whose services and brand will not only be accepted in Fairhope – Alabama but also in other cities in the United States of America.
• Our mission is to provide professional auto repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in ensuring that their automobiles are always in good shape.
• We want to build an auto repair garage that can favorably compete with other leading brands in the automobile maintenance and repair services industry.

Our Business Structure

Jack & James Auto Garage®, LLC is an auto repair and maintenance garage that intend starting small in Fairhope – Alabama, but hope to grow big in order to compete favorably with leading automobile repair garages and automobile servicing centers in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Jack & James Auto Garage®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Auto Garage Supervisor

Human Resources and Admin Manager

• Sales and Marketing Executive
• Automobile Repair and Maintenance Engineers / Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Auto Garage Supervisor:

• Serve as project manager of the organization; works directly with employees
• Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Make certain that the auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Jack & James Auto Garage®, LLC
• Serves as internal auditor for Jack & James Auto Garage®, LLC.

Auto Repair and Maintenance Engineers (2) and Technicians (8)

• Handle Power train repair services
• Handles Brake repair services
• Handle wheel alignment and repair services
• Handles other repair and maintenance services
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Jack & James Auto Garage®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured auto repair garage business that can favorably compete in the highly competitive auto maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Jack & James Auto Garage®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jack & James Auto Garage®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new auto repair and maintenance garage in Fairhope – Alabama, it might take some time for our auto repair and maintenance garage to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the auto maintenance and repair services industry is massive considering the number of individuals and corporate organizations who owns automobile in the United States. As an auto repair and maintenance garage, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto repair and maintenance garage in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

One good thing about the Auto Repair Shop industry is that, it is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

It is a known trend in developed world and even developing world to find steady growth in the Auto Repair Shop Industry, As a matter of fact, the Auto Repair Shop industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Lastly, it is now becoming trendy to find automobile engineers and technicians who do not have the required finance to rent a shop opt for mobile auto repair garage business; they are known to move around especially on highways with their complete tool box looking for broken down cars, trucks and vans et al to fix.

8. Our Target Market

Before starting our auto repair and maintenance garage in Fairhope – Alabama, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of auto repair and maintenance garages especially haulage companies and transport companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Transport Companies
• Haulage Companies
• Individuals and households
• School with transportation system for students

Our Competitive Advantage

Surviving in the business world as an auto repair and maintenance garage requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big solar automobile repair, servicing and maintenance garages and the small ones as well.

What smaller auto maintenance, servicing and repair garages need to do to survive in the industry is to concentrate on providing automobile repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels et al before bidding for big auto repair, servicing and maintenance contracts from large corporations (franchise from automobile manufacturing companies to run their service centers) and government agencies (Public Works Department et al).

We are quite aware that to be highly competitive in the automobile maintenance, servicing and repair industry means that you are not only expected to be able to deliver consistent and highly reliable auto repair, servicing and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups automobile maintenance, servicing and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jack & James Auto Garage®, LLC is established with the aim of maximizing profits in the auto repair, maintenance and servicing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Jack & James Auto Garage®, LLC will generate income by offering the following auto maintenance, servicing and repair related services;

10. Sales Forecast

One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to take their cars, vans, and trucks et al for routine maintenance and servicing or for outright repairs.

We are well positioned to take on the available market in the automobile maintenance, servicing and repair services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our solar panel installation, maintenance and repair company to enviable heights.

We have been able to critically examine the automobile maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fairhope – Alabama.

Below is the sales projection for Jack & James Auto Garage®, LLC. It is based on the location of our business and of course the wide range of auto repair, servicing and maintenance services and target market;

• First Year-: $250,000
• Second Year-: $750,000
• Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same auto maintenance, servicing and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the automobile maintenance, servicing and repair industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Jack & James Auto Garage®, LLC.

Our corporate goal is to grow Jack & James Auto Garage®, LLC to become one of the top 10 automobile maintenance, servicing and repair garage brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages.

Jack & James Auto Garage®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our auto maintenance, servicing and repair garage by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations and key stake holders.
• Promptness in bidding for auto repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations
• Advertise our business in relevant business automobile magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Fairhope – Alabama and other cities in the United States of America where we intend opening our garages which is why we have made provisions for effective publicity and advertisement of our solar panel installation, maintenance and repair company.

Below are the platforms we intend to leverage on to promote and advertise Jack & James Auto Garage®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Fairhope – Alabama
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Jack & James Auto Garage®, LLC and the services we offer
• List our auto repair, servicing and maintenance business in local directories / yellow pages
• Advertise our auto repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Jack & James Auto Garage®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in their fleet of automobiles for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

At Jack & James Auto Garage®, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an automobile repair and maintenance garage; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Jack & James Auto Garage®, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance , permits and license will cost – $3,500
• Acquiring a garage facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed tool box and repair equipment – $25,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications to run our business – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard auto repair, maintenance and servicing garage in the United States of America.

Generating Funding / Startup Capital for Jack & James Auto Garage®, LLC

Jack & James Auto Garage®, LLC is a business that will be owned and managed by Engr. Jack Romney and his twin brother and business partner for many years James Romney.They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Jack & James Auto Garage®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our auto maintenance, servicing and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jack & James Auto Garage®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our studio: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and servicing tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

The 7-Step Business Plan to Grow Your Auto Repair Shop

Free profit and valuation ebook.

Discover and implement essential shop management strategies for building a profitable, high-valuation business.

• By Kyle Zhao
• | February 23, 2022
• | Business Advice , Tips

Does your auto repair shop’s growth rely merely on hope, or do you strategize how to drive your business forward?

Try our Free Business Valuation Calculator

While many auto repair shops and most businesses operate on hope—whether it’s hoping new target customers and repeat customers show up to spend a lot of money—it’s not an effective plan, says Al Wheeler, Chief Executive Officer of ShopPros , a management and training company that offers a complete business system for independent auto repair shops.

Wheeler, who has 35 years of experience in the automotive industry, understands the challenges that every auto repair shop owner faces. In a recent webinar , Wheeler shared why shops should consider creating a detailed financial plan for growing and sustaining their auto repair business.

“As business owners, we typically spend the majority of our time working in the business and not on the business,” Wheeler says. “I think it’s especially prevalent in our industry because you’re wearing so many hats throughout the day, and our days seem to be consumed by firefighting much of the time. As a result, the business trends really tend to drive us, rather than us driving business.”

The sample auto repair shop business plan discussed in this article outlines a strategy for:

• Discovering the potential in your auto repair shop
• Analyzing the current status of your auto repair shop
• Setting repair shop goals
• Training and planning
• Implementing change
• Monitoring and measuring

Why do you need a business plan for your auto repair shop?

Think of a business plan as a GPS for your auto repair shop. Not only will a business model provide details and direct you from point A to point B, but it also optimizes your route and helps you avoid potential pitfalls along the way.

According to research by Entrepreneurial Dynamics , using business plans helps you become:

• Twice as likely to obtain a bank loan
• Twice as likely to create investment value 
• 49% more likely to grow

While goal setting remains an important aspect of this equation, it’s not the same as business plans, which analyze current performance and define specific actions to reach purposeful results. “Keep in mind that setting goals, while important in business, does not constitute a business plan,” Wheeler says.

“Business planning really lays the foundation for continuous improvement,” Wheeler says. “I like to call it a success cycle for your business. What fundamental steps do you need to take to create an environment of continuous improvement within the business?”

Creating a cycle of success is essential for your auto repair shop, and where a clearly defined business plan will play a big role.

• The success cycle starts with a practical understanding of current performance against your desired or optimized outcome. Complete this analysis in thoughtful detail.
• The planning process then kicks in, helping you define specific actions to take advantage of outcomes. 
• As results of this success cycle start to roll in, employees across your auto repair shop will begin to believe more and more in the business’s potential. This positive energy keeps the success cycle in motion, resulting in even more growth.

“It’s about establishing (this) success cycle for your business. It builds on belief, establishes potential, and leverages the specific actions you choose to deliver those purposeful results,” Wheeler says.

Can your shop survive without a plan?

According to the U.S. Bureau of Labor Statistics (BLS) , approximately 20% of new businesses fail during the first two years of starting operations, 45% during the first five years, and 65% during the first ten years. Only 25% of businesses make it to 15 years or more. Why’s that?

From this industry overview, it’s clear a major reason for failure is their lack of a business plan.  This is where an auto repair business plan will help. With the right high-level overview and strategy, determination of how much funding you need, and enough flexibility, your auto repair shop will have a better chance of success. The future becomes much clearer once a business plan is in place to get the ball rolling.

Creating an auto repair business plan

Now that you know why this type of plan is important, it’s time to put pen to paper. Here are some pointers to help your auto repair shop get started:

Step 1: Discover potential at your auto shop

To discover your auto repair shop’s potential, it’s key to establish a ceiling and baseline so you can measure performance.

In the industry, an auto repair shop’s primary revenue producer is billed hours. It’s critical to determine your production capacity because that helps determine the ceiling of your financial plan, Wheeler says. Production hours will drive business potential in terms of revenue and gross projected profit, which ultimately your employees generate. Incorporate this business idea into your auto repair shop’s own business plan and create a more efficient system to generate money.

One of the common elements includes examining relevant benchmarks of other shops of a similar type and size, and their quality work performance.

Step 2: Analyze your auto shop’s current status

Determining the current status of your auto repair shop helps you understand how your shop compares to its potential. This includes analyzing store averages in daily, weekly, and monthly production, revenue, and gross projected profit.

Not only do you want to scrutinize business performance, but also individual performance. This executive summary includes auto mechanics’ average production, service advisor average gross profit, and service advisor billable hours and revenue. Keep these factors in mind when forming the business plan for your auto repair shop.

“This is a good way to effectively establish the baseline in which we’re going to judge performance improvement in those key areas and within our key employees,” Wheeler says.

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Step 3: set goals for your auto shop team.

Team involvement remains necessary to achieve individual and store-level goals. “This is where it’s critical to have team involvement and remember the SMART acronym—specific, measurable, achievable, relevant, and timestamp goals,” Wheeler says.

To remain on track with your automotive repair shop business plan, set specific monthly, weekly, and daily goals, both at individual and store levels. It’s important to involve your team in establishing these repair services goals and possess effective ways to measure them.

Step 4: Train and plan for auto shop growth

Training and business planning become critical components of facilitating change. Investing in your team as part of your own plan not only shows you care but allows them to grow in knowledge and skill.

Planning becomes part of the long-term business strategy. While many shops set business plans and goals around needing more car repair services completed, which drives sales, shops should first build the underlying fundamentals for a great customer experience

“We don’t need more cars for the sake of cars,” Wheeler says. “We need more cars to develop long-term loyal customers, and if we don’t have a conversion strategy for those guests, more cars are not going to sustain our growth.”

Step 5: Implement change to grow your auto repair business

A business plan won’t become effective unless it’s put into practice. To do this, good communication and accountability remain key.

“I’ve seen companies develop these great missions and vision statements, only for them to become artwork on the wall,” Wheeler says. “They really don’t have any substance behind them, and they aren’t lived out each day.”

Step 6: Monitor and measure your auto shop’s performance

To measure success, your auto repair shop needs to set relative benchmarks so they can obtain broader insights into the business and performance. This information will help you determine next steps on how to attract customers and generate new business. An excellent way to do this within your automotive repair shop business plan is by investing in automotive repair business software, such as AutoLeap .

While it’s important to monitor and measure repair services goals in your new plan, it’s also important to communicate with your team in daily or weekly meetings.

“What we’re doing in this business plan is essentially establishing the playbook in which you’re going to operate your auto repair business,” Wheeler says. “It’s going to drive the customer engagement system within your shop, so your business plan really should strive to eliminate randomness in your auto repair business. Nothing should happen by accident, everything should be intentional around achieving your objectives.”

Step 7: Adapting to the changing auto repair industry

Your auto repair shop must keep up with the changing dynamics of the automotive repair industry, technology, and customers’ behavior. Within the plan you put together, your auto repair shop  must prepare for the electrification of vehicles and equip itself to deal with the latest technology, such as Advanced Driver Assistance Systems (ADAS) . How will your business plan account for these emerging vehicle technologies and the potential customers they draw?

“I understand changing an operating system is painful, but in many cases, it’s going to be necessary,” Wheeler says.

An auto repair shop should consider:

• What could you be doing based on your existing staffing by location?
• A performance dashboard that can provide relevant data at a glance.
• A plan built and owned by the business with discrete actions.
• Standards/goals set for every tech and advisor to measure performance and reward/recognize high achievers.
• Benchmarking against every competing auto repair shop gives you insight into your relative performance and identifies areas to improve.
• Effective technology and systems that ensure great customer experiences.

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Your auto repair shop business plan, much like other goals, is only effective and only as good as it’s acted upon, Wheeler points out.

“It’s kind of like Newton’s first law that we all learned in school—objects in motion will remain in motion until acted upon by an external force,” Wheeler says. “In other words, your business will continue on the path that it’s on unless you engage the energy necessary to change that trajectory…If you think you can do better, then I think one of the energy components that you can use, or should consider, is a comprehensive business plan.”

Now that you’ve learned the steps to prepare an auto repair shop business plan and explored several benefits, it’s time to execute on this clear vision and  grow your business .

Customers with older vehicles are more likely to need auto repair services. Why is this? For one, older vehicles tend to break down more. Warning signs like check engine lights will appear more frequently, requiring a visit to your shop.

To write a business plan for your auto shop, you will need to: 

• Analyze your shop’s current status 
• Set SMART goals for your shop team
• Include plans for training and growth 
• Prioritize communication and accountability  
• Establish and measure performance benchmarks
• Account for evolving industry trends

Auto repair shops’ profitability depends on many factors. But the revenue potential is significant. Nearly one third of surveyed shops in AutoLeap’s 2022 State of the Auto Repair Industry Report generated $1 million or more in 2021 revenue. 

Successful promotion helps maintenance shops earn new business. Targeted email marketing and aggressive word-of-mouth outreach are two widely used strategies. Referral programs, organic SEO and active social media presences also help attract new customers. 

You can promote your car repair business by: 

• Launching social media accounts and posting regularly 
• Targeting local search terms with paid marketing 
• Sending creative promotional emails to your target customers
• Creating a referral program
• Building up your organic keyword rankings

Auto Repair Shop Management Software

AutoLeap is a powerful all-in-one auto repair shop software that helps to keep complete track of your business – from scheduling appointments to managing technicians and generating invoices.

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Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

You’ve come to the right place to create your Car Dealership business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Car Dealerships.

Below is a template to help you create each section of your Car Dealership business plan.

Executive Summary

Business overview.

Wilson Toyota, located in Albuquerque, New Mexico, is a brand-new Toyota dealership that sells, leases, and services new and used Toyota vehicles. Our dealership will feature all the models that Toyota makes, from budget models to hybrids. In addition to our large inventory, we also offer in-house financing and service and repairs for all Toyota owners. With our competitive prices and world-class customer service, we plan to be the #1 Toyota dealer in the Albuquerque area in the next five years.

Wilson Toyota is led by Dylan Wilson who has extensive sales experience, including selling used cars for a previous employer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

Product Offering

Wilson Toyota will maintain an inventory of new and used Toyota vehicles. We will sell all Toyota models, including hybrid and electric vehicles. Some of the models we plan to sell include:

Wilson Toyota will also have a service center to help Toyota owners with routine maintenance, repairs, recalls, and part replacements. Additionally, Wilson Toyota will offer financing and insurance options for customers with all credit scores. Customers will find financing options at Wilson Toyota that they will not find at other area dealerships.

Customer Focus

Wilson Toyota will primarily serve the residents in the Albuquerque area. The city is home to thousands of families, professionals, and businesses in need of vehicles. We will offer budget vehicles to those who only need a basic model as well as luxury vehicles to those who have the disposable income to purchase something high-end.

Management Team

Wilson Toyota is led by Dylan Wilson who has been in sales for 20 years. Dylan Wilson has sold products in numerous industries, with his most recent experience being at a competitor dealership. Dylan Wilson is a car aficionado. He knows everything about the most popular models and how to find the perfect vehicle for every customer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

While Dylan Wilson has never run a dealership himself, he has worked in the industry for years. As such Dylan Wilson has an in-depth knowledge of the dealerships industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

Wilson Toyota will be able to achieve success by offering the following competitive advantages:

• Location: Wilson Toyota’s location is near the center of town, giving us access to thousands of residents, local office workers, and passersby shopping in the city.
• Great service at an affordable price: The complete array of auto services offered by Wilson Toyota is comprehensive, and Wilson Toyota will offer these services at a much more affordable price.
• Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, Dylan Wilson knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Financial Highlights

Wilson Toyota is currently seeking $10 million to launch. Specifically, these funds will be used as follows:

• Lot design/build: $100,000
• Franchise fee: $400,000
• Inventory: $9 million
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $100,000
• Working capital: $100,000

Company Overview

Who is wilson toyota, wilson toyota’s history.

Dylan Wilson incorporated Wilson Toyota as an S-Corporation in February 2023. The business is currently being run out of Dylan’s private office, but once the build-out on Wilson Toyota’s commercial location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found commercial space and signed Letter of Intent to purchase it
• Developed the company’s name, logo, and website
• Hired an architect to design the showroom
• Determined equipment and inventory requirements
• Begun recruiting key employees

Wilson Toyota’s Services

Industry analysis.

Wilson Toyota competes against other new and used car dealerships, as well as online-only auto dealers and private consumer sales. The major trend in auto sales is that more people are purchasing vehicles online rather than through a salesperson. To meet this challenge, Wilson Toyota will offer flexible online purchasing through our website.

Even though the industry is changing, it is still growing and remaining profitable. According to Mordor Intelligence, the industry is expected to grow at a CAGR of 4% over the next five years. Even with the increasing demand for public transportation and cleaner forms of transportation, vehicles are still an essential purchase for most Americans.

According to a report by the National Automobile Dealers Association, the car dealership industry is a fragmented one, as the majority of operators are single-location businesses and employ fewer than 20 people. The market is estimated to grow to over $1 trillion in five years. Since there are no truly dominant competitors, barriers to entry are not as high as in many other industries, and a start-up can expect to have success in this growing market, Wilson Toyota is well-positioned for success. There is plenty of room in the industry particularly for conveniently located dealerships that cater to specific demographic trends and demands. In this industry, size does not necessarily mean an advantage, which bodes well for Wilson Toyota.

Customer Analysis

Demographic profile of target market.

Wilson Toyota will serve the residents of Albuquerque, New Mexico and the immediately surrounding areas as well as those who work in the area.

The area we serve is populated mostly by middle-class Millennials; as a result, they have the means to pay for higher-quality vehicles. Further, many are looking to transition to hybrid or electric vehicles, and middle-class earners are the primary demographic for these types of vehicles.

Customer Segmentation

Wilson Toyota will primarily target the following customer profiles:

• Professionals

Competitive Analysis

Direct and indirect competitors.

Wilson Toyota will face competition from other companies with similar business profiles. A description of each competitor company is below.

Gibson Toyota

Gibson Toyota’s goal is to give its customers the best possible experience online and at its physical store. The professional and fun-loving sales team is committed to its customers’ complete satisfaction. Gibson Toyota prides itself on building relationships with its customers throughout all phases of the automotive journey whether it’s sales, service, or parts. Gibson Toyota provides auto sales and services for both new Toyotas and used cars.

While we expect that Gibson Toyota will continue to thrive. But since it is located in the next city, we expect more and more customers will frequent Wilson Toyota based on proximity and competitive prices we offer.

Johnson Auto

Johnson Auto is an independent used car dealership specializing in certified pre-owned vehicles. The team believes that the car-buying process should be as hassle-free as possible. The team takes pride in serving its customers to the fullest. The service center is one of the best in the area, and the team strives to get its customers back on the road as soon as possible. Johnson Auto maintains a convenient online parts inventory, and if a customer can’t find what they want there, the team will help them find what they are looking for. At Johnson Auto, the team is willing to answer each and every question a customer might have during the car buying process.

Wilson Toyota has several advantages over Johnson Auto, in that it specializes in selling and servicing one make of vehicle. Wilson Toyota will provide these specialized services at an affordable price point.

Foster’s Chrysler, Jeep, Dodge, Ram

Foster’s Chrysler, Jeep, Dodge, and Ram offers both new and used inventory, as well as providing service for these makes. The dealership also retails auto parts and accessories. This location also participates in Toyota Rent a Car, in which new Toyotas are rented by the day. Camrys rent for $48.50 per day and Corollas rent for $37.80 per day.

Foster’s Chrysler, Jeep, Dodge, Ram offers some services which are unique to the area, and thus we expect it will continue to draw a large clientele. However, because many of its services are geared toward a rental clientele, we expect to draw buyers who seek the same level of support.

Competitive Advantage

Wilson Toyota will be able to offer the following advantages over its competition:

• Relationships: Having lived in the community for 25 years, Dylan Wilson knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Marketing Plan

Brand & value proposition.

Wilson Toyota will offer a unique value proposition to its clientele:

• Convenient location
• Large inventory of new and used vehicles
• Highly trained specialists
• Significant personal attention
• Moderate price point
• Comfortable, customer-focused environment

Promotions Strategy

The promotions strategy for Wilson Toyota is as follows:

Commute Advertising

We will drive attention toward Wilson Toyota by leasing a billboard alongside multiple highways. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.

Website & SEO Marketing

The company will utilize the website and SEO to attract new customers. The website will be easy to navigate and provide all the information and pictures needed to show our dealership and the vehicles we sell. The SEO strategy will also be managed to ensure that anyone searching for new Toyota vehicles will see our company listed at the top of the Bing or Google search engines.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about vehicles and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its brand in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Wilson Toyota’s pricing will be competitive so customers feel they receive great value when shopping for a new car. The customer can expect to receive quality services and personalized attention when patronizing the dealership.

Operations Plan

The following will be the operations plan for Wilson Toyota.

Operation Functions:

• Dylan Wilson will be the Owner of the company. He will oversee all staff and manage the general operations of the company. He will also partake in customer service and sales until he has employed a full staff of sales professionals. Dylan has spent the past year recruiting the following staff:
• Janie Wilson will serve as the dealership’s Administrative Assistant. She will assist Dylan with all the operational, executive, and administrative aspects of the business. She will also manage the phones until Dylan hires a receptionist.
• Joe Smith will be the Services Manager. He will oversee all the operations of the services department.
• Maria Kenway will be the Sales Manager. She will oversee all the sales staff and help out with customer service, managing sales, and the appraisal process for used vehicles.
• Dylan will hire a full staff of service technicians and sales professionals to help with the service, sales, and customer services functions.

Milestones:

Wilson Toyota will have the following milestones completed in the next six months.

• 3/202X Finalize lease agreement
• 4/202X Design and build out Wilson Toyota
• 5/202X Hire and train initial staff
• 6/202X Kickoff of promotional campaign
• 7/202X Launch Wilson Toyota
• 8/202X Reach break-even

Financial Plan

Key revenue & costs.

Wilson Toyota’s revenues will come primarily from the sale of vehicles and secondarily from the sales of parts/accessories and auto services.

Labor expenses are a major cost driver for dealerships with service departments. Service technicians are salaried; therefore, attractive compensation packages are necessary to maintain qualified staff. Furthermore, large commissions help the dealership keep the best salespeople on staff. Other major cost drivers for the company include the lease, franchise fees, inventory and parts, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average annual franchise fees: $100,000
• Annual lease costs: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Car Dealership Business Plan FAQs

What is a car dealership business plan.

A car dealership business plan is a plan to start and/or grow your car dealership business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Car Dealership business plan using our Car Dealership Business Plan Template here .

What are the Main Types of Car Dealership Businesses?

There are a number of different kinds of car dealership businesses , some examples include: New Car Dealers, Used Car Dealership, and Online Car Dealership.

How Do You Get Funding for Your Car Dealership Business Plan?

Car Dealership businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

This is true for a used car dealership business plan as well.

What are the Steps To Start a Car Dealership Business?

Starting a car dealership business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Car Dealership Business Plan - The first step in starting a business is to create a detailed car dealership business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your car dealership business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your car dealership business is in compliance with local laws.

3. Register Your Car Dealership Business - Once you have chosen a legal structure, the next step is to register your car dealership business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your car dealership business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Car Dealership Equipment & Supplies - In order to start your car dealership business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your car dealership business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful car dealership business:

• How to Start a Car Dealership Business

Where Can I Get a Car Dealership Business Plan PDF?

You can download our free car dealership business plan template PDF here . This is a sample car dealership business plan template you can use in PDF format.

Other Helpful Business Plan Articles

Car Wash Business Plan Template Franchise Business Plan Template Car Detailing Business Plan Template

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Auto Repair Business Plan Sample

Published Nov.11, 2016

Updated May.16, 2024

By: Jakub Babkins

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Table of Content

Do you want to start an auto repair shop business?

Are you thinking of starting an auto repair shop? Well, auto repair is one of those businesses that allow you to earn considerable profits even by managing a small team. The business provides repair and maintenance services for automobiles. Moreover, in many cases, auto repair shops also offer aftermarket modifications and upgradation services.

So, if you have made up your mind to enter this venture, you should first prepare a auto repair shop business plan . If you don’t know how to open an auto repair shop or how to make an accurate auto repair shop business plan , you can take help from here.

The essence of an Auto Repair Shop Business Plan

Over the years, we have been monitoring the operations and success of some auto repair shops in a bid to determine the strategies that they use to grow their enterprises. Here are some of the findings that we feel will have a great impact on your new auto repair shop.

• Understand the market needs and tailoring the services right
• Managing their resources well
• Embracing new technology

It is important that you learn how to cope with these problems to business continuity plan checklist reigning supreme and achieve your short and long-term goals such as achieving financial stability. Here are some of the challenges that you will face if you venture into this business without a proper auto repair shop business plan.

Scalability Issues

As the auto business grows and attracts more clients, you will encounter many challenges that need to be responded to well. Simple mistakes can bring down your business no matter the success that you have achieved so far. For instance, an increase in customers can lead to the lack of enough space to store business the various materials. The most plausible solution to such a problem is by expanding your workspace or renting a large facility.

A auto repair shop business plan is not complete if it does not give instructions on how scalability challenges or issues will be resolved. As mentioned earlier, we have been monitoring some facilities over the last three years. The research has given us an in-depth understanding of the industry, and we will use the same knowledge to come up with credible recommendations that you can use to jump the hurdles.

In this blog, we’re providing a sample auto repair shop business plan of a startup, Auto Fix & Services.

Executive Summary

2.1 the business.

Auto Fix & Services will be a registered and licensed auto repair shop in Austin. The business will provide usual repair and maintenance services ranging from oil change to parts replacement. The business will also offer car modification and upgradation services such as window tinting, installing air filters, etc.

2.2 Management of auto repair shop

Running an auto repair shop requires a relatively smaller team. Still, you need to have a proper management plan. Because, without strict supervision, your workers may do some negligence during repair work – resulting in losing your customer’s trust.

The best way to ensure efficient management is to create a comprehensive auto repair shop business plan . In which you’ll list all the details of how to start a auto repair shop and how to manage it successfully.

2.3 Customers of auto repair shop

Before exploring how to open up a auto repair shop you should think of who’ll be your customers. As that will enable you to do the relevant preparations.

Auto Fix & Services identified its customers as the following groups:

• Professional Automobile Drivers
• New Car Owners (Households/ Individuals)
• Used Car Owners (Households/ Individuals)

2.4 Business Target

• To achieve an NPS score above 80 within two years of our launch
• To achieve a CSAT score of 95 to 98% within a year of our launch
• To earn a net profit margin of $24.5k per month by the end of the third year of our launch

Company Summary

3.1 company owner.

Auto Fix & Services will be owned by Robin Redford. Robin is a talented person with exceptional managing skills. He started his career by working in an auto repair shop as an auto mechanic. After working for four years, he got promoted to a managing post. However, he served as a manager for just three years and eventually decided to start his own business.

3.2 Why the auto repair shop is being started

Due to a great demand for trustworthy auto repair works, Robin decided to start his own shop. By starting a auto repair shop Robin wanted to make considerable profits and introduce 100 percent reliable services.

3.3 How the auto repair shop will be started

Step1: Write Auto Repair Shop Description

To start an auto repair shop, the first step is to make a detailed auto repair shop business plan . For that purpose, you can read any example auto repair shop business plan available on the web like this sample business plan for auto repair shop. Or you can hire a professional to make your auto repair shop business plan .

Step2: Make The Arrangements

The second step is to get the licenses and permits to start an auto repair shop. After getting his business registered, Robin will rent a facility to turn it into a repair shop. At the same time, he’ll procure the machinery and tools required to provide his services.

Step3: Recruit Your Staff

Robin will hire the expert and certified auto mechanics for his shop. The complete list of his employees will be given in the upcoming sections.

Step4: Promote & Market

After that Robin will devise his sales strategy to reach out to his customers. He has decided to offer several discounts in the startup phase to get more and more customers.

Step5: Ensure Strong Web Presence

Lastly, you have to ensure a strong online presence so that people can find you whenever they search for the relevant services on Google.

The costs required to carry out all of the above steps are provided in the following table:

Owning your own auto repair shop allows you to offer a wide range of services. From this business plan for auto repair shop , you can see the services provided by Auto Fix & Services.

• Automobile engines
• Automobile exhaust systems
• Automobile brakes
• Automobile radiators
• Ignition System
• Electric repairs
• Spark plug, fuel cap, and others
• Tire pressure monitoring
• Wheel alignment
• Regulating radiator fluid, brake fluid, transmission fluid, etc.
• Maintaining car’s air conditioning system
• Installing Efficient air filters
• Installing the latest stereo system
• Brake discs
• Backup camera
• Turbochargers and more
• Seat covers
• Dash covers
• Fuel consumption meters
• Steering wheel covers

Marketing Analysis of Auto Repair Shop

Before opening an auto repair shop business plan you should carry out detailed marketing analysis to explore the market trends and the competitors’ strategies. This critical examination will help you in introducing competitive aspects for your own shop. Moreover, in your auto repair workshop business plan you should also identify the groups of your target customers so that you can devise your policies and pricing plan accordingly.

If you are starting an auto repair shop business plan but don’t know how to write a business plan for auto repair shop, you can take help from here. However, if you think that you don’t possess the skillset to make an accurate marketing plan, you should prefer hiring a professional marketing analyst.

5.1 Market Trends

According to SBDCNet, nearly 160k auto repair and maintenance shops are running in the United States – generating a collective annual revenue of $115 billion. The demand for such services is increasing because of an overall increase in automobile purchases. Along with the fact that cars need regular maintenance after a certain mileage. And that maintenance and upgradation cannot be done without proper space and machinery.

5.2 Marketing Segmentation

Auto Fix & Services divided its target market into separate groups to study their needs and expectations thoroughly. The detailed marketing segmentation done by them is provided below:

Business plan for investors

5.2.1 professional automobile drivers.

This will be the group of our major target customers. Professional automobile drivers such as Uber drivers, taxi drivers, bus drivers, and others, need car maintenance and repair services much frequently than all other groups. It is because of their long hour driving and large mileage. Moreover, this group is also expected to be a significant buyer of our car parts and accessories.

5.2.2 Used Car Owners (Households/ Individuals)

Our second target customers will be the owners of used cars. People who buy used cars often get the old parts such as seat covers, engine, brakes, replaced by newer ones. Thus, they are expected to avail of all of our services especially car upgradation and repairs.

5.2.3 New Car Owners (Households/ Individuals)

Lastly, new car owners who would want to upgrade their automobiles will also be our target customers. This group is usually very careful about their cars. Thus, they are expected to avail of our regular maintenance services more frequently. Moreover, they’ll also acquire our upgradation services.

To turn these people into potential/ repeat purchasers, we’ll offer several benefits to them. The biggest benefit our repeat customers will get is free video consultation. Whenever they encounter any problem while being far away from us, we’ll help them to resolve the issue themselves. Moreover, we’ll also send our auto mechanics to their location if the fault is of complicated nature.

5.3 Business Target

Our business targets are:

• To earn a net profit of $24.5k per month by the end of the third year
• To obtain a repeat purchase rate of 80% throughout our service years
• To achieve and maintain a CSAT score of 95 to 98% within a year of our launch
• To achieve a Net Promoter Score of above 80 within two years of our launch

5.4 Product Pricing

Our prices are almost in a similar range as that of our competitors. However, we still expect to get more customers due to our competitive advantages.

Marketing Strategy

After you have fulfilled all the requirements to open an auto repair shop business plan , you should start thinking about its promotion. To get introduced to a larger audience, you need to develop an accurate auto repair shop marketing plan.

For your help, we’re providing the marketing strategy planned by Auto Fix & Services.

6.1 Competitive Analysis

• Our auto mechanics hold ASE certification. All of our workers are highly experienced and skillful.
• We also provide remote auto repair services throughout Austin. However, this service will be provided in special cases where bringing the vehicle to our facility wouldn’t be feasible.
• Only we in the entire city provide video call assistance so that customers can repair minor faults themselves. However, this service will only be valid for return customers and repeat customers.

6.2 Sales Strategy

• We’ll advertise our startup through posters, Google Local ads service, and social media.
• We’ll ensure a strong web presence to reach out to a wider audience and to keep track of our return/ repeat customers.
• We’ll offer a 50% discount on our services for the first month of the launch.
• We’ll offer a 15% discount on automobile accessories for the first two months of our launch.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

It is essential to make a list of the employees you’ll need to run your business. When you write business plan auto repair shop you must make your personnel plan enlisting required staff and their expected salaries.

7.1 Company Staff

Robin will hire the following people for his assistance:

• 1 Supervisor to help in the management
• 8 Auto Mechanics to perform the major work
• 2 Technicians to provide overall support
• 1 Database Manager to manage company’s sites and arrange video calls
• 1 Accountant to maintain financial records
• 1 Front Desk Manager/ Call Operator
• 2 General Assistants
• 1 Sales Executive

7.2 Average Salary of Employees

Financial Plan

Great service.

Great service. Good turnaround time and quality work. Thanks!

The last thing to do before launching your auto repair shop business plan is to create a detailed financial plan. Your financial plan should describe the expenses, net worth of your startup, projected loss and profits, and balance sheets for at least three years.

Since startup and running costs for auto repair shops are usually high, it is essential to devise a trajectory to achieve your financial goals – provided the limited resources, sales, and investment. Understanding the importance of an accurate financial plan, Robin hired a professional financial analyst to create an auto repair shop business plan . The financial plan developed by him is given here to provide you an idea of auto repair shop finances.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Template Business Plan for Auto Repair Shop in pdf

Professional writers OGS capital specialized also on a theme such as auto parts business plan , starting an auto dealership business the right way , car dealership business plan , car wash business plan , car shop business plan , car accessories business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Write an Auto Repair Shop Business Plan

• Last Updated: March 27, 2023
• By: StartUp 101

Advertising Disclosure

A business plan is perhaps the most important tool for starting or expanding an auto repair shop.  Writing an auto repair shop business plan for the first time can be intimidating, but we have tips and sample plans to help write your plan.

Why is a Business Plan Important?

While many people write their auto repair shop business plan for the purpose of funding, the business plan can offer many more benefits. 

You have likely already spent a lot of time thinking about your shop, but it’s next to impossible to stay organized and reach all of your goals by not writing them all down. It’s very difficult to have a clear vision until you put those thoughts on paper and that’s where the business plan comes in.  Creating a business plan provides a blueprint to connect all the dots and make your vision a reality.

Another point to encourage you in writing your business plan is the Small Business Administration shows that over 21% of small businesses fail in the first year and 50% fail in the first five years.  Some of the more common reasons for business failure include not starting with enough money, lack of planning and over estimating revenue.  The business planning process identifies issues on paper which can help reduce costly mistakes after opening. 

The business plan is also important because of the critical feedback you can get on your venture.  It’s very common for a new entrepreneur to be overly optimistic when starting their business and being blind to what they don’t yet know.  By having another auto repair shop owner, professional or consultant in the auto repair industry, local business owner or accountant look over your plan, they will provide critical feedback to find weaknesses in the plan and make sure your numbers are reasonable. Getting these insights and fixing the plan before taking it to a lender or investor increases the likelihood you will have a successful business and receive funding.                

Taking the time to write a business plan is not something many prospective auto repair shop owners want to do because it’s unfamiliar and takes time. Keep in mind though, that writing a business plan is nowhere near as hard as running an auto repair shop, especially one that wasn’t properly planned from the start.

What Goes in a Business Plan?

There isn’t a set format that business plans are required to use, however there are certain topics that need to be covered. Below we have an auto repair shop business plan outline that should be helpful in getting started.  However, since this is your plan, write it the way that makes the most sense for your business and the intended reader.

Executive Summary

The executive summary is included at the beginning of a business plan but is going to be the last thing written.  This section should be a clear, concise, and high-level overview to help the reader (often a lender or investor) quickly decide whether or not your project is one they will continue reviewing.  If they aren’t engaged after reading the summary, they will not likely read further so it is important to quickly generate interest.

Common elements of an executive summary for an auto repair shop business plan includes:

• Overview of your auto repair shop
• What need is your shop serving that isn’t currently being served
• Experience of the owner(s) or staff
• Amount being requested
• How much the owner(s) are investing
• What the money will be used for

Business Overview

The business overview section of an auto repair shop business plan is where you provide details of what the business is going to do.  It’s especially important to show the excitement you have for the business and knowledge of the industry.  If you are using the plan for funding, you will have the opportunity to tell the loan officer all the great things you plan to do.  However, the plan will likely be going to a loan review committee who won’t get to hear your story, so be sure to get all the important details on paper!

The business overview has a few key areas to focus on, including the overview of shop, any specialties that will be offered and why the auto repair shop is needed in your area.

In the auto repair shop overview, provide some details on the services to be offered by the shop.  Many repair shops operate as a general mechanic, fixing anything that comes in the door, while others focus on particular brands or even specializing in transmissions or brakes. 

Another important aspect of this section is to answer why this auto repair shop is needed.  Describe what makes your auto repair shop unique among all the other repair shops in your area and why people will go to you versus the competition.

While you may be the best at turning a wrench, it takes a lot more than that to have a successful business.  Not saying being the best mechanic isn’t important, but just being a great mechanic may not be enough.  The owner of a successful auto repair shop needs to not only offer quality work, but also properly manage employees, market effectively, watch the numbers and so on. 

Industry Overview

The industry overview section should describe the overall market for auto repair shops.  If national sales trends aren’t increasing, try to find positives that support the decision to open a new repair shop, such as population growth in your local market.  The more supporting data you can come up with to support the strength of the industry the better, but be sure to reference where you got this information.  A lot of industry information can be found with an online search or in industry publications but if you haven’t already, take a look at our Guide to Starting an Auto Repair Shop.  

Company Ownership

Indicate the legal entity of the auto repair shop and how ownership is structured.  If you aren’t sure about the differences between a sole proprietorship, partnership, corporation or LLC, be sure to check out our overview of legal entities.

Finding a great location is an important aspect of starting an auto repair shop.  Ideally, the location of your shop should be in a location with high visibility and traffic, and easy to get to.

You may not have a site identified yet or you may have several to choose from, which is fine.  If you don’t have one yet, discuss what you’re looking for in terms of general location, square footage, price and any other important details.  If you don’t have a site selected yet, include as many details as are available and estimate on the high side as to what your location is going to cost.

Read more about tips for choosing a location .

Hours of Operation

Include the hours your auto repair shop will be open and include any reasoning as to why those hours are important if relevant. 

Provide some details on who your equipment and inventory vendors will be.  Make sure you have identified all the suppliers necessary to ensure constant and reliable inventory.  Do you have a back-up in case your main supplier has issues in getting you the inventory you need?

Permits and Licenses –

Before opening a new auto repair shop, you’ll need to obtain several federal, state, and local licenses and permits.

Learn more about licenses and permits for a new business.

Owners, Management & Employees

In this section, include a brief biography on the owner’s professional experience and education.  This section is especially important when looking for funding as a lot of weight is placed on the experience of the owner(s) and their ability to successfully run an auto repair shop. If the owner(s) don’t have direct industry experience, explain how their previous experience is relevant.

Management and Employees

This section outlines the auto repair shop’s staffing plan and will ultimately help to estimate the positions needed and forecast payroll expenses.

In the management portion, outline the title of the position and wages for any managers or key positions.  There may be some people you have already selected for these key roles.  If so, include a bio about their experience to help build the credibility of the team. 

Next, include information about staffing to detail what positions and how many people are needed to run the auto repair shop.  Include the title of the position (such as mechanic, front desk, administrative, etc), the number of people needed for each position, hours needed per week or month and the wages for those positions.  

Include a timeline of milestones already achieved and those that are being worked on.  By having a timeline, you will have a list of the sequence of when critical tasks need to happen.

The competition for auto repair is competitive and the number of ways to market keep expanding.  Without a solid plan to inform and entice, it may be hard to get customers in your door.  Getting noticed in the market is critical, so what will you do to get the message out and make your auto repair shop stand out?

The marketing section is one of the most important sections of the business plan, but is often not given the time and attention to detail as it needs. Why is it so important?  Because your business needs customers to spend money and without sales, there is no business.  Without knowing who your customers are and how to reach them, they may never hear about your auto repair shop. 

Some key areas of the marketing section should include the target market, promotional strategy and competitive analysis.

Target Market

The first building block in the marketing plan is defining the target market.  While a lot of people have vehicles, it’s easy to assume that everyone is also your customer.  This isn’t case since some people have warranties on their vehicles and some people do their own work.   

A target market is a group or groups of people that are most likely to benefit from a company’s offerings.  A target market shares a similar set of characteristics such as demographics (age, gender, education, or income), interests (sports, hobbies, lifestyle or values) or geographic areas.  Don’t think of targeting a specific group as excluding people and limiting business potential.  By defining your target market, you are able to more effectively spend your marketing budget by specifically going after the people who are most likely going to need your auto repair services. 

After defining who your target market is, try and find numbers as to how many of them there are.  This is usually easier to do with demographic or geographic information, but having actual data in your business plan lends credibility and will help to form the basis for the sales projections we will work on later.  Here is a free resource to help research the size of the potential target market .

In addition to marketing directly to potential customers, are there opportunities in developing relationships with companies to work on their fleets, used car dealerships, towing companies, etc as a referral source?  While the profits for fleet work and dealerships is lower than when dealing with customers directly, the volume and consistency of work may be well worth it.

Promotional Strategy

After defining the target market, the promotional strategy comes next.  The promotional strategy looks at how to best reach your target market.  By knowing your target market, assumptions can be made on how to best reach them by focusing on their media preferences. 

If you are going to do the marketing in-house, make sure to have a solid plan in place on how you will generate attention through the various marketing channels like print, radio, social media, website, etc.  Knowing your target market is key so you can most effectively reach them. Many plans make the mistake of stating they are going to use word-of-mouth marketing and do social media themselves as their only marketing.  Word-of-mouth is great but it takes years to build in most cases.  Social media can be effective for many businesses, but it takes a consistent and dedicated strategy to make it work well. Most business owners get busy working in the business and can’t stay consistent with their social media efforts. Not only is a strong promotional strategy important for the success of your auto repair shop, but lenders and investors will see through a weak promotional strategy which may affect your ability to get funded.  Also, be sure to not guess how much advertising is going to cost and get actual quotes so you have real numbers in the plan.

If marketing isn’t your strong suit or maybe you aren’t sure you have enough time to stay consistent, you can look at hiring a marketing company.  Hiring a marketing company lets you focus on what you do well, while they focus on what they do well and market your auto repair shop. If you decide to go this route, get details and prices for the work they are going to do.  Include these details in the plan.

Competitive Analysis

The competitive analysis section will provide an overview of the competition in your area and why you believe people will choose your repair shop over them.  You will likely focus on the independent shops offering the same services, but don’t forget the dealerships and larger corporate repair shops as well. If you are offering a particular type of specialty that isn’t solely being offered by another shop, don’t say there isn’t any competition, as many other shops probably are offering it. One example would be a shop only offering brake jobs.  While there may not be another shop specializing on brake jobs, it’s likely every other shop is offering those as well.

You should list how many auto repair shops are in a nearby radius as customers can have their vehicles towed to other shops.  Then, focus your analysis on the top 3-5 competitors.  The purpose is to research and show you understand the competition and what gives you a competitive advantage.  If you don’t have a competitive advantage yet, it may be time to go back to the drawing board to come up with one.  Unless the local population is growing, it’s going to be difficult to get people to change where they are currently having their vehicles worked on unless you offer something different or the competition is really bad.

Some of the key areas to look at in a competitive analysis include:

• Competitor’s name
• Years in business
• Services offered
• What they do well
• What you will do better

This is not the place to bash your competition or make references to how bad their repairs are or what a terrible person the owner is since these are subjective statements. Doing so also makes you look unprofessional.

Financial Projections

The financial projections of your auto repair shop business plan are the most important part of the plan, but are often the most intimidating.  Typically, lenders and investors will read the executive summary first to see if it is a project they would be interested participating in and then jump right to the projections.  If the thought of preparing your own financial projections is a bit daunting, software such as LivePlan helps make it easier.

Sales Projections

Sales projections can be complicated to estimate without knowledge of the market.  There are a number of ways of estimating sales for an auto repair shop, but you will want to refer back to your target market research that was done earlier to support your assumptions.

This is a common place for new business owners to be overly optimistic and is where having a mentor or consultant help with the plan.

Read our article on creating financial projections for more information.

Seasonality

When looking at sales projections, the effects of seasonality also needs to be evaluated.  Seasonality is more significant in some businesses than others and is important to estimate because it can show in the financial statements whether a business is projected to run out of money. 

Simply dividing sales by 12 months is a common mistake picked up by lenders and investors because it shows the entrepreneur may not really understand the sales trends for the industry.

Local markets will vary, and auto repair shops aren’t typically highly affected by seasonality, but services are generally more needed during times of temperature extremes in the winter and summer.  

Uses of Funds

Start off with a section for the Use of Funds to show the total cost of starting the shop.  List any costs you have already incurred and what still needs to be purchased.  You don’t need to itemize every little item like small individual tools, so combine the cost of all similar items and list them.   

It’s important to have quotes for everything should the bank or lender request them, but only add quotes for the more expensive items such as building renovations or large equipment as attachments in the Appendix. 

Total up the Uses of Funds to find the total cost of the project

Sources of Funds

The Sources of Funds section breaks out where the money is going to come from.  The owner’s investment is commonly listed first.  Most lenders are going to want to see the owner(s) put in between 15% – 25% for a new auto repair shop.

Other funding sources are listed next such as bank loans, investor funds, etc. Learn more about finding financing for your auto repair shop .

The total amount in the Sources of Funds should match the Uses of Funds.

Financial Statements

There are three primary financial statements that a lender is going to look at for a start-up auto repair shop which include the cash flow statement, profit and loss statement and balance sheet. The information provided previously in the narrative portion of the business plan must match the financial projections.

Cash Flow Statement – The projected cash flow statement is an important tool when starting a business. Similar to a checkbook register, the projected cash flow statement shows an estimate of the money coming into the business and expenses that will need to be paid.  The benefit of this statement is to see whether there is enough cash to sustain the business based on the assumptions.  Should this number be negative, the assumptions need to be reevaluated to see if sales can be increased, expenses reduced or if more cash is needed to start the business.

The cash flow statement is typically structured to look at three years in the future, with the first year broken out by month and years two and three broken out by quarter.

Profit & Loss Statement – This statement (sometimes called a P&L statement or income statement), while similar to the cash flow statement, shows the annual income and expenses of the auto repair shop.  The projected profit and loss statement is often displayed annually and takes a before-tax view of the financial results of the business.

Balance Sheet – The projected balance sheet statement is not requested by all banks when reviewing a loan for new auto repair shop. A projected balance sheet shows the projected assets and liabilities for a business at start-up and then the end of each year.

Personal Financial Statement

If applying for bank financing, a personal financial statement will typically be needed for every person with a 20% or more ownership position in the shop.  This statement is similar to one that is used to apply for a home or car loan.  Here is a link to a personal financial statement template. The personal financial statement will show a borrower’s assets (checking & savings accounts, CD, IRA, 401K, valuables, home, vehicle, etc) as well as assets (mortgages, credit card bills, installment accounts, etc).

See how to fill out a personal financial statement .

At the end of the plan, include an appendix section to include any supporting information such as resumes, quotes, floor plans, etc.

Save Time with an auto repair shop Business Plan Template

To help with creating a business plan, you can use our free business plan template .  This template can be used for any business, so some of the sections may not be relevant to your auto repair shop business plan. Some of the tips in this article should help you in modifying it to work for your shop.

To help with the creative juices, here is a link of a free sample auto repair shop business plan.

Last, there is software such as LivePlan that includes an auto repair shop business plan narrative and financial projections to help make writing a business plan easier.

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Auto Repair Shop Business Plan Sample

Have you ever considered opening an automotive repair shop?  Auto shops are known as businesses that have strong cash flow, and fair profits.  In this auto repair shop business plan sample we will show you what goes into developing a strong plan.  Please remember this is merely a guide, and the best business plans are fully-customized to each individual company.

Before commencing on your auto repair shop, you may have a few questions. How profitable are auto repair shops? How to grow an auto repair business? How much does it cost to start an auto repair shop? How do I get more customers in my auto repair shop? How to market an auto repair business?

Brace yourself, because in this article, our team has prepared a comprehensive automotive repair shop business plan, which should help address these queries.

To conquer the largest auto repair companies in the USA, you must first grasp the auto repair industries intricate nuances. Automotive repair service companies in the US provide a wide range of automotive repair and mechanic services to ensure optimal performance and longevity of vehicles. Whether you are looking to start a mechanic business or small auto shop, we can help you with a customized automotive repair business plan or mechanic shop business plan, which is catered to your specific goals and requirements.

As things take shape, it will be time to paint the operational landscape of your auto repair shop. Envision the perfect location, layout, and equipment needed to manifest your vision. Map out the staffing requirements, employee training protocols, and the smooth workflow process, which will ultimately define your mechanic shop’s efficiency.

Seek out and foster relationships with trustworthy vendors and suppliers who can provide you with leading automotive parts, tools, and supplies. Engage with those who offer competitive prices, exceptional quality, and lightning-fast delivery to fortify your shop’s operations.

Navigate regulations. Familiarize yourself with local, state, and federal rules governing the auto repair industry. Obtain the necessary licenses and permits to properly operate your shop, and of course, ensure your business adheres to the highest environmental and safety standards.

In conclusion, for an ambitious entrepreneur , crafting a comprehensive business plan for your auto repair shop is your ticket to triumph in this fiercely competitive industry. We hope you enjoy this auto shop business plan example.

1.0 Executive Summary

“Your Canadian Auto Shop” (The Company) is a Tire and Customization Shop with nine locations spanning across British Columbia, Alberta and Saskatchewan.  Over the past ten years the company has gained recognition across Western Canada as a leader in tire, wheel, rim and accessory customization.  With a sprawling population, the City of Saskatoon has been identified as an ideal location for Your Canadian Auto Shop’s tenth Tire and Customization Shop.

With the support of senior management, Ralph Walzek  will open an incorporated business, and raise $122,750 through the Canada Small Business Financing Program (CSBFP) for the equipment and leasehold improvements required to successfully launch this location.  Ralph Walzek  will receive an annual management salary of $75,000, and 20% of the Saskatoon Location’s net income.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.  This demand, and low-barriers to entry has resulted in a level of saturation within the industry; notwithstanding, Your Canadian Auto Shop has established a process which sets them apart in this competitive landscape.

By offering affordable customizations, unmatched selection, a culture of customer satisfaction, and a convenient selection of payment options, Your Canadian Auto Shop stands out in an otherwise crowded marketplace.  Regardless of this increasingly competitive landscape, the company has continued to grow year after year.  In partnership with senior management, Ralph Walzek  will utilize over two decades of professional management experience to guarantee the success of this tenth Your Canadian Auto Shop location.

According to Statistics Canada’s 2020 Consensus, Saskatoon is currently the third fastest growing metropolitan region in Canada.  With a thriving business sector, Saskatoon is an attractive and vibrant city that is a primary engine for the province’s wider economy.  With an experienced management team, reputable brand, profitable business model, and strong demographics, this location is positioned to be a flourishing Tire and Customization shop for many years to come.  Furthermore, Ralph Walzek  is committed to being a fair and equitable employer, to support the local labour market, and the community of Saskatoon at large.

2.0 Business Overview

Your Canadian Auto Shop was established 10 years ago in Edmonton, Alberta.  Since then, the company has grown to nine locations across Western Canada, and is poised to continue it’s track record of growth.  Ralph Walzek  seeks to incorporate a company and secure a $122,750 loan for the equipment and leasehold improvements of this tenth location in Saskatoon, Saskatchewan.  This incorporated business will operate under the Your Canadian Auto Shop brand in the Tire and Customization Industry.

2.1 Industry Overview

North American Industry Classification System (NAICS) Code – 44132

Tire Dealerships

Establishments: 2,383

0-99 Employees: 100%

Average Revenue: $1.1 million

Profitable: 76.1%

This industry comprises establishments primarily engaged in retailing tires and tubes. These establishments also typically provide complementary services, such as tire mounting and wheel balancing and aligning.

2.2 Mission Statement

OUR MISSION IS TO PROVIDE THE CITY OF SASKATOON WITH LEADING AUTO REPAIR SERVICES.

2.3 Goals and Objectives

• Approval from TD Business Banking to proceed with incorporation
• Ralph Walzek will incorporate a business and provide documentation to CIBC
• Secure $122,750 through the Canada Small Business Financing Program
• Secure a location for the shop in Saskatoon, Saskatchewan
• Purchase all equipment and inventory outlined in “6.0 Financial Plan”
• Recruit one Sales Rep and Tire Technician from the Regina location, as agreed upon
• Open for business on July 1, 2021

2.4 Key Success Factors

Safety in the Workplace : Focus on maintaining safe working conditions.  In addition to protecting our staff, our location’s image revolves around safety and consciousness.

Inventory Management Skills : Able to control stock on hand and install accurate costing systems.

Employment of Skilled Automotive Technicians : Access to skilled technicians in a workforce that is becoming more technologically advanced.

After Sales Service and Support : Provide superior customer service in a segment that can be very competitive.

Location Close to Key Markets: Location in the heart of Saskatoon, therefore determining  market size, average customer income, vehicle count, population, and competition.

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3.0 Staffing

AUTOMOTIVE TIRE TECHNICIAN

• Interact with Commercial Sales Consultants and/or Counter Sales Service Associates to obtain work orders and commercial customer service specific requirements.
• Install, balance, rotate and repair tires at Saskatoon location in a safe and efficient manner.
• Support fellow Tire Technicians and Sales Rep as required.
• Install and service all tires up to qualifications.
• Deliver customer tire maintenance program to businesses by visiting assigned locations to complete fleet checks.
• Accurately complete all documentation/paperwork in relation to service work provided so that efficient billing can be conducted.
• Inventory, maintenance, cleaning and other duties as assigned by management for both the shop and the service trucks.
• Ensure service vehicle and all equipment is maintained in a safe, neat and clean manner at all times.
• Assist the shop associates to ensure the shop and service vehicles are kept in a safe, neat and clean manner at all times both inside and outside.
• Conduct efficient Receiving/Shipping of all inventories that enters and leaves the shop.
• Professionally interact and communicate with customers to explain service details and advise on any additional service maintenance that has been identified.

Requirements

• Internal Candidates – Intermediate PLT Skills
• Valid Driver’s License with a clean abstract
• Basic mechanical aptitude and previous exposure to automotive work
• Interest in further expanding knowledge about the tire industry
• Well developed people skills with the ability to professionally interact with customers
• Maintain a clean and professional personal appearance and grooming.
• Farm and small OTR tire experience preferred.

4.0 Products & Services

We specialize in getting customers the right tire that suits the vehicle and application. Snowflake Rated All Terrain Tires, All-Weather Tires, All-Season Tires, Performance Tires, Track Tires, Mud Tires, All Terrain Tires, Rugged Terrains, Mud Boggers, Winter Tires, Semi, Agricultural, and the list goes on.  We are committed to providing tires for every price point.

WHEELS & RIMS

Your Canadian Auto Shop has access to all types of rims and custom wheels. We are factory direct, which means huge discounts and quick turnaround times for our customers. We specialize in high offset and low offset wheels, staggered wheel fitment, American muscle, tuner cars, winter rim & tire combos, concave wheels, deep dish, and all sizes.  We are confident our offering of Armed Brand Wheels will be well received in the Saskatoon area.

ACCESSORIES

• Multiple brands of lift and leveling kits
• Multiple brands of exhaust tips
• Multiple brands of mud flaps
• Multiple brands of tonneau covers
• Fender Flares
• Exhaust Systems
• Multiple brand of front and rear bumpers
• Cold air intake
• Multiple brands of side steps

5.0 Operations

Securing a strategic and busy location, prominently visible within Saskatoon, will be a key element of our operations.  Not only will our shop be easily accessible, but also well positioned; therefore, increasing market exposure.

Ensuring a safe and healthy workplace will be our highest priority.  Owner and Location Manager, Ralph Walzek  has extensive experience in ensuring the health and safety of his team members.  “Safety starts at the top” and by utilizing over two decades of safe work practices, Ralphwill lead by example in day to day operations.  Each and every morning a safety meeting will be conducted to review best work practices, and weekly topics; while everyone on the team will be encouraged to participate.

5.2 Payment & Financing

• Payment with cash
• Payment via credit cards, point of sale machines, or EFT
• Payment via mobile money transfer
• We also have in place Driver Capital no credit check financing

5.3 Hours of Operation

Monday 9AM – 6PM

Tuesday 9AM – 6PM

Wednesday 9AM – 6PM

Thursday 9AM – 6PM

Friday 9AM – 6PM

Saturday 9AM – 5PM

Sunday – CLOSED

5.4 Equipment

Please refer to “6.0 Financial Plan” for a complete list of required equipment.

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6.0 Market Analysis

Over the coming years, operators in the Tire Dealers industry in Canada are set to benefit from improving economic conditions, particularly within several of the industry’s key commercial markets, as the Canadian economy recovers from the COVID-19 pandemic.

With expected growth in corporate profit over the five years to 2025, which will be coming off a relatively low base level, many companies are expected to expand or upgrade their existing vehicle fleets and generate significant demand for retailers of tires, repair services and miscellaneous vehicle parts and accessories. Moving forward, rising levels of disposable income are expected to bolster demand for industry services, as these trends are anticipated to enable a greater number of Canadian consumers to upgrade existing vehicles, causing the industry’s customer base to expand.

As a result of these factors, IBISWorld projects industry revenue will increase at an annualized rate of 3.0% to $5.5 billion over the five years to 2025.

Commercial markets are anticipated to expand as industrial production growth is expected to occur within the Canadian economy. Moreover, corporate profit in Canada is forecast to increase at an annualized rate of 8.3% over the five years to 2025, enabling many of the industry’s transportation and wholesaling clients to increase investments in their vehicle fleets.

To further strengthen demand from this segment, operators are expected to grow business relationships and secure long-term distribution contracts over the next five years. For example, national and regional repair garages are expected to work to gain a competitive edge against smaller shops by entering into long-term commercial relationships with tire dealers.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.

In turn, these positive trends are expected to support demand for industry operators. Industry profit is also expected to increase marginally over the next five years, as the profit margin is expected to recover from a low level in 2020.  At the same time, rising levels of disposable income are anticipated to encourage many consumers to purchase tires and repair services from external car dealerships or mechanics.

6.1 Market Trends

• Amid COVID-19, industry profit is expected to temporarily decline
• Despite high competition, revenue has expanded over the past five years
• New vehicle sales are expected to grow from a low base level in 2020
• The industry will likely benefit from consistent growth in the Canadian population
• Small-scale operators are expected to continue entering the tire-dealer market
• Industry profit will likely decline as operators seek to gain market share by offering discounts on products and services

6.2 Competitive Advantage

The following list outlines the three competitive advantages that will differentiate Your Canadian Auto Shop Saskatoon from the competition:

• We are uniquely equipped to utilize the sales from all other stores to give us substantial buying power in obtaining our products cheaper from suppliers; subsequently, allowing for more affordable and competitive pricing for customers.
• Through our agreement with Driver Capital No Credit Financing, we are able to appeal to a vast customer base by eliminating insufficient credit as a barrier to purchase.
• We will be the only dealer in Saskatoon offering the extremely popular brand, Armed Wheels.

6.3 Risk Analysis

Total vehicle-kilometres.

Tires most often degrade from extended use and age. As a result, the more a vehicle is driven, the more often replacement tires or retreads will be required. The number of total vehicle-kilometres was expected to increase in 2020. However, due to the COVID-19 pandemic, people have reduced nonessential travel and have commuted less by car, leading to an expected decline in the number of total vehicle-kilometres driven, which poses a potential threat to the industry.

World price of crude oil

High gasoline prices, which are dictated by crude oil price trends, generally decrease vehicle sales and cause consumers to switch to alternative modes of transportation. For instance, consumers may use public transportation when gasoline prices are high instead of driving their own vehicles and incurring the expense of gasoline. As a result, when consumers use their cars less, they will not require tires as quickly, thus decreasing industry demand.

Per capita disposable income

Per capita disposable income influences the timing and value of tire purchases. Consumers with more disposable income are quicker to replace worn tires and are more likely to purchase expensive, high-performance tires. Alternatively, consumers with less disposable income may be hesitant to purchase expensive products or to replace worn tires.

New vehicle sales

New vehicles are sold with a set of factory-installed tires. Increases in vehicles sold boost industry revenue for the long term as it increases the base of potential vehicles that need replacement tires. In the short term, new cars typically do not need replacement tires. When consumers buy new vehicles over maintaining their current ones, industry revenue is negatively affected. As of its last update, new vehicle sales were expected to increase in 2020. Due to the coronavirus pandemic, however, consumers are expected to purchase fewer new vehicles, which represents a potential opportunity for the industry. 3

7.0 Sales & Marketing Plan

Our Sales & Marketing Plan is founded on the strength of Your Canadian Auto Shop’ well-established brand.  The company has a proven marketing strategy that targets multiple social media platforms in order to attract an array of target customers. The Saskatoon shop will have the benefit of people already recognizing the name and stellar reputation of the Canadian Custom Autoworks’ brand.  Our Saskatoon Shop will leverage the brand through signage, placement on the company’s website, and awareness on social media.

7.1 Target Customers

HOUSEHOLD CONSUMERS

The Tire Dealers industry in Canada serves a broad range of customers, with everyday household consumers accounting for the vast majority of the industry’s total revenue.

• 18 – 65 years of age
• All income levels, as we deal in lower level, mid-level and premium level products
• Resides in the Saskatoon Metropolitan Region (population of 325,806 – 2019 Q4)
• Major Ethnicities (European 72.2%, Aboriginal 11.2%, South Asian 4.7%, Filipino 3.9%) 4
• Drives a motor-vehicle

BUSINESSES FOR END USE

Businesses for end use, including trucking companies, construction companies, farmers and mining outfits, represent the second-largest source of revenue for industry operators.

• We will establish relationships with local companies, in an effort to provide wheels and tires for their fleets.

DEALERSHIPS

• Kia of Saskatoon, Ens Toyota, Ens Lexus, Oakwood Nissan, Bema Autosport BMW, Porsche Centre Saskatchewan, Saskatoon Mitsubishi, Mercedes-Benz Saskatoon, Saskatoon South Hyundai, Volvo Cars Saskatoon, Acura Centre of Saskatoon, Jaguar Saskatoon, Mid City Auto Centre, Saskatoon Auto Connections Sales Centre, Wheaton GMC Buick, Subaru of Saskatoon, Studio Fiat, Mainway Mazda, Bright City Auto Sales

7.2 Key Channels

We understand the nature of our referral based industry.  Our focus is to provide the most professional experience available, consequently laying the groundwork for a consistent stream of referrals.

SOCIAL MEDIA

Social media will reach our target customers in two ways; pre-established Your Canadian Auto Shop pages will drive wider brand recognition and messaging, while our location will create a Facebook page for our community of direct customers in the Saskatoon area.

GOOGLE MY BUSINESS

A Google My Business account will be established to receive reviews from customers, to assist customers with finding the shop, to keep the public up to date on hours of operation, and provide additional contact information.

GOOGLE SEARCH

The company’s website will be imperative in assisting buyers through the sales process.  By learning more about our products in one central place, people can transition from prospects to paying customers quickly.

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7.3 swot analysis.

8.0 Financial Plan

8.1 Five Year Pro Forma Cash Flow Statement

Are you interested in seeing more business plan samples? Here is a variety of business plan samples   to help guide you through your entrepreneurial journey.  If you need any help in developing a custom business plan contact us here!

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How to Write an Auto Repair Shop Business Plan + Free PDF

Elon Glucklich

8 min. read

Updated February 16, 2024

Looking for a free, downloadable auto repair shop business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.

You don’t need to find a sample business plan that exactly matches your business. Whether you’re starting an independent garage, a specialty shop for imports, or an auto body shop, the basics of the plan will be the same.

More than 280 million registered vehicles were on the road across the United States at the end of 2022. With a vast majority of them being used vehicles, the need for skilled auto repair technicians is higher than ever.

In this article, we’ll cover the basic elements of how to write an auto repair shop business plan, from your marketing plan to your financials. We also provide a sample auto repair shop business plan PDF for you to download and incorporate into your own plan.

What should you include in an auto repair shop business plan?

Are you writing a business plan for your auto shop because you’re seeking a loan ? Are you looking to clarify your path to creating a profitable, long-lasting business? 

Independent auto repair shops account for three-quarters of all used car repairs in the U.S., so there are numerous examples of successful business models to guide your business. 

But no two auto shops are exactly the same, so your plan will differ from others based on who you’ve identified as your target market , and what products and services you’re offering them.

Many business plans include the following sections:

• Executive summary
• Company overview and funding needs
• Market and competitive analysis
• Products and services
• Operational plan
• Business structure
• Marketing and customer acquisition strategies
• Financial planning and projections

One thing that makes an auto repair business plan different from many other service-based business plans is the sheer number of different products and services you might offer. 

For instance, besides providing auto repair services, you might also sell parts, accessories, and car care products. Each might require a different promotional strategy to maximize the number of sales you make.

You may also want to think about how you’re pricing your services and if you have specific staffing requirements or training programs.

Here’s an example of an auto repair shop business plan outline.

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The 8 elements of an effective auto repair shop business plan

1. executive summary.

The executive summary is a high-level overview of your business plan. 

It shouldn’t be more than two pages, and even though it goes at the beginning of the plan, you should write it last. That’s because the executive summary is basically a condensed version of your business plan.

Your executive summary should include a mission statement that describes the purpose of your business and what sets it apart from competitors. Maybe you can guarantee a quicker service time than other shops in your area, or you offer a unique mix of services.

Your business plan helps you focus on these key factors that will help your auto repair shop thrive, and the executive summary makes your plan more credible to anyone reading your plan.

2. Company overview and funding needs

The company overview is a short summary of your auto repair shop, including its legal structure , location, and history. 

If you aren’t seeking a loan or investment for your business, you can likely skip this section. 

If you are writing the business plan for funding, clearly state: 

• How much you need
• What you will use it for
• How it will benefit the business

For instance, you may need funds to renovate your building, buy equipment, or place advertisements.

3. Marketing plan and competitive analysis

The marketing plan focuses on analyzing the auto repair shop market in your area, both in terms of potential customers’ needs, and how other shops in the area are (or aren’t) meeting those needs.

Researching your market involves researching local demand for auto repair services. For instance, a shop in a colder climate might have customers with different car issues than a shop in a warmer area. A shop in a lower-income market might get more customers with older vehicle models than one in a high-income market.

The market analysis should also examine your competitors , noting their strengths and weaknesses and how you can differentiate your shop.

4. Products and services

This section outlines the range of services your auto repair shop will offer. You can list them as bullet points, though you should also take some time to explain why you are offering them. 

Start with your most profitable services, and work your way down. Also, separate any unique services products that differentiate your auto repair shop from competitors (you’ll need to do market research to know which services will set you apart).

A list of products and services could include:

• Engine repairs
• Transmission work
• Suspension and steering
• Brake repair
• General maintenance
• Auto part sales

You can also include specialty services like:

• Classic car restoration
• Hybrid and electric vehicle maintenance 

5. Operational Plan

The operations section details the everyday functioning of the auto repair shop. It includes the shop’s operational hours, workflow management, and customer service policies.

The idea with this section is to cover the processes that you’ll deploy in your business to make sure your shop is operating efficiently, so you can maximize the number of customers you’ll serve and revenue you’ll bring in. 

Be sure to touch on how you’ll manage inventory , work with parts suppliers, and ensure equipment maintenance protocols are being followed. Also, outline safety procedures and environmental compliance measures you’ll implement.

6. Business structure and management

This section describes the organizational structure and management of the auto repair shop. If you skipped the Company Summary and Funding Needs section, include information about your legal structure here. 

Many owners choose to incorporate their business as Limited Liability Companies (LLCs) . This option strikes a balance between protecting the business from legal liabilities while providing flexibility in how they operate their business.

The management team section provides information about the auto repair shop’s key personnel. This includes the shop owner, managers, technicians and front office support. 

Briefly explain their roles, responsibilities, qualifications, and experience. 

7. Marketing and customer acquisition strategies

This section is where you’ll outline your strategies for attracting and retaining customers. You might want to offer loyalty programs for repeat customers, discounts for customers coming to your shop for the first time, or add-on services like a free car wash.

Cover the various marketing channels you’ll use, like local advertising or online marketing. Maybe you want to create a strong website and leverage social media. Or maybe you’ll rely more on partnerships with local businesses and participation in community events. 

Focus on how you plan to build a strong reputation to attract and retain customers.

8. Financial planning and projections

Your financial plan should give detailed financial projections, including sales , expenses , and profitability . If you’re running an existing business, you can start with your previous year’s numbers. If you’re just starting out, put in your best guess.

Set a goal for yourself — maybe you want to grow revenue by 5 percent. Create a 12-month cash flow statement, income statement, and balance sheet that rises by 5 percent from the beginning of the year to the end.

Then, run your business. 

As you compare your actuals to the forecast over time, you’ll see where you need to make strategic adjustments in order to reach your goal or if you need to revise your target. 

It’s totally fine to adjust your forecast over time — forecasts are just guesses, after all.

Building a successful auto repair shop business plan: Key considerations

Understanding your target customer’s needs is crucial to writing an auto repair shop business plan that you can use effectively. 

To ensure your business plan is the foundation of a growing operation, ask yourself whether you’re taking these considerations into account.

1. Service range

Vehicle owners have varied needs. 

You should offer a broad spectrum of services that meet as many of the needs in your market as you can realistically provide, from basic maintenance to specialized repairs. Catering to more customer segments than your competitors is a good way to set your shop apart.

2. Pricing strategy

Competitive pricing is crucial. You want to attract customers with reasonable rates, while ensuring profitability by bringing in more revenue than expenses. Researching your competitors’ prices should help inform your pricing decisions.

3. Technician expertise

Skilled technicians are vital to your reputation and your bottom line. Make sure your technicians undergo regular training so that they’re up to date with the latest automotive trends and technologies. 

Take some time to research technician wages in your area, to ensure you’re paying a competitive wage that will attract qualified employees.

4. Online presence

A strong digital footprint is essential. 

Even if you plan to rely on traditional advertising and word-of-mouth sales, a website that is search engine optimized can help you generate good online reviews and attract customers in your area who are searching for auto repair services online. 

If this isn’t an area of strength for you, consider hiring a website designer .

5. Shop environment

It may not make or break your business, but providing a welcoming environment at your shop signals to customers that you’re running a credible organization—a factor that might affect whether or not they return. 

Focus on cleanliness, organization, and professional service.

Download your free auto repair shop sample business plan PDF

Download your free auto repair shop sample business plan PDF now, or explore Bplans’ collection of over 550 sample business plans for other options.

There are numerous reasons auto repair shop owners can benefit from writing a business plan — you’ll almost certainly need to write one if you need a bank loan.

But even if you’re not seeking funding, writing a business plan increases your chances for sustained growth .

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• What to include in your business plan
• Elements of a business plan
• Key sections
• Example and template

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An interest rate cut is coming. Here's what to do with your money beforehand.

The Federal Reserve is gearing up to cut interest rates as soon as next month, which could bring relief to people with mortgages, credit cards and car loans. But it could be a bumpy ride until then.

A weaker-than-expected jobs report Friday triggered a sell-off on Wall Street this week from which markets are struggling to recover . And there’s still uncertainty around how deeply the central bank might slash rates , if it does so as expected when it meets in mid-September. Many consumers are looking for some financial stability in the short term while planning to benefit from lower borrowing costs in the medium to long terms.

That balancing act isn’t easy, Bankrate senior economic analyst Mark Hamrick acknowledged. “We should hope for the best,” he said, but “prepare for some possible outcomes that are less than optimal.”

Here are some financial do’s and don’ts experts suggest in the meantime.

DO take advantage of high-yield savings

Now’s still a good time to stash money in accounts paying generous interest.

“Circumstances can occur that are damaging to our personal finances, outside of recessions” or stock market turbulence, said Hamrick, who noted that nearly 60% of U.S. adults are uncomfortable with their current emergency savings. “How we prepare for those things, including how much savings we’re either inclined to or able to put away, are ultimately what helps us to manage through those difficulties.”

Most analysts don’t expect the Fed to cut its benchmark rate more than 0.5 percentage points initially. That means high-yield savings accounts — for which some of the best rates top out at 5.35% — are likely to remain appealing.

DON’T rely too heavily on CDs

Certificates of deposit — fixed-rate bank accounts with term limits — are a go-to when interest rates are high. Some are paying interest at levels that rival those of high-yield savings accounts , and it may seem smart to lock in a 5% yield for many months after the Fed starts lowering rates. But several experts cautioned against over-relying on high-yield CDs.

If you’re close to retirement or have a fixed income, a short-term CD of a year or two might be an “attractive option” to take advantage of interest rates, said Rodney Lake, director of the GW Investment Institute at the George Washington University School of Business.

But “you really have to factor in your time horizon,” he said, because much longer than that could mean lost opportunities to reinvest those funds elsewhere with higher returns.

In addition, cashing out a CD early usually entails a penalty. So “if there’s any chance you might need it, buyer beware,” said Laura Veldkamp, a finance professor at Columbia University’s Graduate School of Business.

DO prioritize credit card debt

Now’s the time to pay down card balances, experts said. Chipping away at your debt and improving your credit score can position you to take advantage of better borrowing conditions.

With interest rates coming down, the idea is just pay and save as much as you can right now.

Laura Veldkamp, Columbia Business School

“With interest rates coming down, the idea is just pay and save as much as you can right now and have that consumption party” later, Veldkamp said. “That’s the sort of timing play here.”

Credit card balances are typically most consumers’ highest-rate debt. While the ratio between U.S. households’ average debt and income remains historically low , credit card delinquency rates have been rising , and those behind on payments face larger balances, Philadelphia Fed researchers said last month.

“Make all your payments on time” if you’re able to, Veldkamp advised. “Be really diligent about it, so that when it comes time to borrow, one looks like a good candidate and can get a good rate.”

DON’T set it and forget it

Simply asking about discounts and special promotions — from utility bills to prescription costs — can yield surprising results , and credit card rates are no different, Hamrick said: Pick up the phone and see what your card issuer can do.

There’s no bad time to do that, but when the central bank lowers interest rates, it can be even more valuable. That’s especially true if your credit card has a variable APR, because not all lenders will quickly or automatically lower it after a Fed cut.

“Not to say they do it on purpose, but maybe they forget to reset your rate down,” Lake said. “Make sure that you hold those people accountable.”

DO put some money in the market …

It might seem counterintuitive to buy stock in the wake of this week’s rout, but many financial advisers live by the “buy low, sell high” mantra. If your experience as an investor is nonexistent or limited to your employer’s 401(k), consider opening an investment account and start small, Veldkamp suggested.

“You don’t have to be a millionaire to have a stock portfolio. Find a simple platform with low fees and buy some things,” she said. For an inexperienced investor without plans to retire any time soon, the key is patience. Over the long term, “if the market crashes, it will rebound,” she said.

… but DON’T try to game it

Fluctuations often motivate investors to take matters into their own hands, but Veldkamp said few tend to outsmart the market.

“It’s tempting to say, ‘Well, when interest rates go down, stocks are going to do well, because people are switching from low-return to higher-return assets,’” she said. “That all may be true, but the fact is that there’s somebody whose job it is to trade on that idea immediately. The second a word exits the mouth of a Federal Reserve official, they are there ready to execute that trade in milliseconds.”

Instead, experts advise keeping a steady, long-haul approach.

“If you’re investing in your retirement, for example, you should be really focused on what the next five, 10 and 20 years look like. You’re investing for those periods,” Lake said.

DO consider mortgage refinancing

With 30-year fixed-rate mortgage rates plunging this week to an average of 6.55%, refinancing demand has surged 16%, according to the Mortgage Bankers Association.

If you’re buying a house and getting into a mortgage, check to see if rates fall can you adjust that mortgage rate.

Jude Boudreaux, Financial Planner, New Orleans

While a Fed interest rate cut would drive mortgage rates lower still, now’s a great time for existing homeowners and prospective ones to scope out their refinancing options, Veldkamp said: “Dig up those details, do your homework, read the fine print and figure out what’s that refinancing cost.”

Jude Boudreaux, a New Orleans-based financial planner, pointed out that most closings take 30 to 60 days, so it’s worth looking ahead even if you’re still in the middle of a sale process.

“If you’re buying a house and getting into a mortgage, check to see if rates fall can you adjust that mortgage rate,” Boudreaux said. “As you’re shopping for a loan, that becomes something to consider.”

DON’T try to time your mortgage

However, Lake warned against looking only at interest rates to time a home purchase, particularly because homebuying demand could jump after a rate cut.

“People should really focus on their individual needs and desires and what they can afford,” he said. “As soon as rates go down, people have more borrowing capacity, so they get pretty quickly reflected in the real estate prices.”

DO hunt for automotive deals

The bad news: “It is doubtful that auto rates will rapidly decline as soon as the Fed starts cutting,” Jonathan Smoke, Cox Automotive’s chief economist, wrote following the Fed’s decision last month to hold rates steady .

The average rate for new vehicles in July was 9.72%, up more than 0.5% year over year but down from 10% in June, Cox said. And the average monthly auto loan payment was $727, said J.D. Power, $5 more than in July 2023.

The good news: Consumers should find plenty of deals in the discounting that typically picks up in August and September as dealers clear lots for new models, Boudreaux said.

Hybrid sales are finally slowing after a springtime surge , according to the auto data firm Edmunds, which means better prices are also likely to be around the corner. And in the secondhand market, one- and two-year-old used car values are down nearly $4,000 from last year.

“If you’re shopping for a new car deal, it might actually be on the other side of the lot,” said Ivan Drury, director of insights at Edmunds.

DON’T rack up costs while waiting to buy a car

Delaying that trip to the dealership can be costly, Hamrick said, especially when it means spending more on Uber rides or missing work because of a lack of wheels. So focus on what you can afford and “bulletproof” your budget for maintenance, repairs and fuel. Chances are that auto purchase will still be net-positive on your wallet.

Hamrick also suggested considering leasing options, even if that means signing a contract before a rate cut. “Maybe you need to trade down on the price point,” he said.

J.J. McCorvey is a business and economy reporter for NBC News.

• Best for Waiting Periods
• Best for Chronic Conditions
• Best for 100% Reimbursement
• Best for Exotic Pets
• Best for Broad Coverage
• Best for Pre-Existing Conditions
• Best for Comprehensive Coverage
• Best for Unlimited Annual Coverage
• Best for Affordable Premiums
• Why You Should Trust Us

The Best Pet Insurance Companies in California

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

To find the top pet insurance companies in California, Business Insider looked at 30 pet insurance companies that cover dogs, cats, and even exotic pets to find the most affordable, comprehensive coverage available. Remember that your insurance rates will depend on your location within the state, as well as your pet's age, breed, and health.

Below, find our team's picks for the best pet insurance companies in California. 

Best Pet Insurance in California

• Best for Waiting Periods: ASPCA Pet Insurance
• Best for Chronic Conditions: Trupanion Pet Insurance
• Best for 100% Reimbursement: Figo Pet Insurance
• Best for Exotic Pets: Nationwide Pet Insurance
• Best for Broad Coverage: Spot Pet Insurance
• Best for Pre-existing Conditions: AKC Pet Insurance
• Best for Comprehensive Coverage: Pumpkin Pet Insurance
• Best for Unlimited Annual Coverage: Healthy Paws Pet Insurance
• Best for Affordable Premiums: Lemonade Pet Insurance

Compare the Best Pet Insurance Companies in California

The best pet insurance companies understand that your pet is unique and offers comprehensive, cost-effective coverage that reflects that understanding. We've chosen the best pet insurance companies accordingly, taking note of waiting periods, coverage for pre-existing conditions, emergency care coverage, and cost.

Here are our picks for the best pet insurance companies of 2024.

Best Pet Insurance for Waiting Periods

Aspca pet insurance.

The American Society for the Prevention of Cruelty to Animals (ASPCA) is a famous nonprofit focused on animal rights. In addition to this critical work, the ASPCA lends its name to affordable pet health insurance plans with great benefits. At this time, the ASPCA does not sell or underwrite insurance, but it does receive royalties to add its name to this pet insurance plan.

Coverage is available for dogs, cats, and horses. Standard plans with the ASPCA include coverage for things like congenital conditions, alternative therapies, and behavioral issues. But most importantly, its policies offer a shorter waiting period than most providers for cruciate injuries (14 days). Pets must be at least eight weeks old to qualify for ASPCA pet insurance, but there's no upper age limit. So senior pets can enjoy coverage through ASPCA pet insurance.

Owners with multiple eligible pets also get a 10% discount monthly. That said, ASPCA also reserves the right to raise your premiums according to your pet's age instead of just inflation, so you may find you're spending way more as your pet gets older. 

Read our ASPCA pet insurance review .

Best Pet Insurance for Chronic Conditions

Trupanion pet insurance.

If you're looking for flexible coverage and have a forgiving budget, consider Trupanion. It provides illness and accident coverage for cats and dogs, including plans without limits and a lifetime, per-condition deductible, saving you money if your pet has recurring health issues. However, if your pet contracts a variety of illnesses, your better off with one of the other companies on this list. 

The most crucial distinction for Trupanion is its low out-of-pocket costs. Eligible customers can choose a $0 deductible with 90% reimbursement. So in a pet emergency, you only pay 10% of eligible vet bills, though a $0 deductible policy will have high monthly premiums. Trupanion also has the unique ability to pay eligible vets directly, so you don't have to go through claims every time you take your pet to the vet.

Pets over 14 years old are ineligible for coverage, and illness coverage has a 30-day waiting period. But Trupanion also offers valuable add-ons that'll cover boarding fees if a pet owner is hospitalized, behavioral and rehabilitative therapy, and coverage for unintentional property damage caused by a pet. 

Read our Trupanion pet insurance review .

Best Pet Insurance for 100% Reimbursement

Figo pet insurance.

Figo is unique in that it offers a 100% reimbursement option. In short, under one of its plans, you'll be covered for 100% of your eligible pet expenses after you meet your annual deductible. In addition, it offers plans with lower yearly reimbursement maximums. The more you pay in premiums, the less you pay at the time of service, and vice versa.

Its comprehensive pet insurance plans include coverage for non-routine dental care, alternative treatments, and hereditary conditions. You can even add preventative coverage with wellness care and vet exam fees.

Added benefits of Figo pet insurance plans include a shorter than average one-day waiting period for accident coverage, a 24-hour pet telehealth line, and its Pet Cloud app to make your pet's vet records much more manageable.

Furthermore, Costco members can access a 15% discount on Figo plans. 

Read our Figo pet insurance review .

Best Pet Insurance for Exotic Pets

Nationwide pet insurance.

Nationwide is a familiar name for home, auto, and life insurance. But did you know it also offers pet insurance plans? You can buy coverage for dogs, cats, birds, and some exotic pets, which is uncommon in the industry. In addition, there are no age limits for pet coverage with Nationwide. Nationwide pet insurance plans are available in every state. So whether you have a dog, lizard, horse, or iguana, you won't have an issue finding pet insurance coverage.

Nationwide's Whole Pet plan covers illnesses, accidents, and some hereditary and congenital conditions, but does not cover wellness treatments. You'll be able to cover preventive care costs with its Major Medical with Wellness plan, but this lacks hereditary and congenital condition coverage. 

It's worth noting that Nationwide has recently announced non-renewals for approximately 100,000 policies from now until the summer of 2025 as a result of rising vet costs and inflation. This may signal some future financial uncertainty, so dog and cat owners may want to look elsewhere for long-term coverage. However, if you have an exotic pet, Nationwide is one of your only options. 

Read our Nationwide pet insurance review .

Best Pet Insurance for Broad Coverage

Spot pet insurance.

What's excellent about Spot is that it offers a wide variety of policies, including coverage for both accident and illness, accident-only, and an optional wellness plan for an additional fee. Additionally, it has a 14-day waiting period for accidents, illnesses, ligament and knee issues, like ASPCA.

Spot Pet Insurance will reimburse exam fees (for select conditions), end-of-life expenses, and prescription food as part of its accident and illness coverage. Most pet insurance providers exclude these benefits from their coverage. Qualified pet parents may also choose unlimited annual coverage. Spot has pet insurance for accidents, illness, and wellness add-ons for dental cleanings, wellness exams, certain vaccines, and more.

Spot pet insurance premiums are high compared to some other pet insurance competitors. Spot also increases your premiums annually based on your pet's age.

Read our Spot pet insurance review .

Best Pet Insurance for Pre-Existing Conditions

Akc pet insurance.

The American Kennel Club's pet insurance plans are available for all pets, not just registered purebred dogs. So you can sign your mixed breed dog or cat up for AKC's pet insurance and choose from various optional add-ons. This includes coverage for exam fees, wellness care, and final expenses, and breeding coverage, which is an uncommon add-on.

You'll get 30 days of free coverage if you register your new pup for an American Kennel Club membership. But pet parents with senior pets may want to consider other pet insurance companies. Pets nine years old or older will only be eligible for accident coverage when you buy your policy. You'll also need to sign up your pet before their second birthday to qualify for the AKC's optional coverage for hereditary or congenital conditions.

American Kennel Club is unique because it covers both curable and incurable pre-existing conditions after a 12-month waiting period. By contrast, other pet insurance companies may cover curable pre-existing conditions after a symptom-free waiting period, but almost all pet insurance companies don't cover incurable conditions at all.

Read our AKC pet insurance review .

Best Pet Insurance for Comprehensive Coverage

Pumpkin pet insurance.

If you're looking for comprehensive pet insurance coverage, Pumpkin Pet Insurance could be a great choice. Unlike many other pet insurance providers, Pumpkin offers coverage for preventable diseases (excluding pre-existing conditions) like Lyme or parvovirus.

In addition, Pumpkin only requires a 14-day waiting period for breeds with common hereditary conditions like hip and joint problems. In contrast, other providers may require waiting periods of up to 60 days. The waiting period is for current and future treatment. So if your pet presents with any of the listed health conditions within the waiting period, that condition and any related vet bills will not be covered in the future.

With Pumpkin, you can get a quote for your pet quickly and easily. You will have fewer options to choose from when it comes to coverage, but the available options are above average compared to other pet insurance providers.

Finally, the company won't decline coverage based on a pet's age. Specific policies also cover advanced treatments for things like behavioral therapy and acupuncture.

Read our Pumpkin pet insurance review .

Best Pet Insurance for Unlimited Annual Coverage

Healthy paws pet insurance.

Healthy Paws Pet Insurance is one of the highest-rated pet insurance companies according to customers. It's not surprising considering it has no limits on how much it will pay per incident, annually, or over the lifetime of your pet. Many pet parents also love the fact that Healthy Paws routinely gives back to homeless pets.

It offers coverage options for all stages of your pet's life, from eight weeks to 14 years old. Pet parents also choose their deductibles and reimbursement levels. If you're concerned about large vet costs after an accident or illness, we recommend paying more in monthly premiums for better coverage. If you're comfortable paying your vet a little more to save money each month, lower coverage options are available.

Read our Healthy Paws pet insurance review .

Best Pet Insurance for Affordable Premiums

Lemonade pet insurance.

Are you looking for pet insurance that won't break the bank? Consider Lemonade Pet Insurance, which offers coverage that starts at just $12 monthly. In addition, some of Lemonade's cheaper wellness plans provide coverage for wellness checks, preventative care, and extended accident and illness coverage. Whether shopping for a new pet insurance policy or adjusting your current plan, Lemonade's website and app provide easy-to-use quoting tools.

If you have other items to insure, you can save even more. Customers who bundle their pet insurance with coverage for, say, your car or rental will get a 10% discount. You can also get 5% off for paying a full year's premium upfront and a 5% discount per policy for two or more pets. Unfortunately, Lemonade pet insurance is only available in some states. You can check its website or run a quote to find out if Lemonade pet insurance is available for your pets.

Read our Lemonade pet insurance review .

How to Pick the Right Pet Insurance Plan For You

When looking for pet insurance plans, comparing different providers is essential to find the best coverage and price. Some factors to consider include the cost of premiums, the amount of coverage offered, the waiting period for coverage of pre-existing conditions, and the reimbursement percentage for veterinary care.

It's also important to read the fine print to understand what is and isn't covered. For example, many pet insurance policies don't cover routine vet care such as vaccinations and annual checkups. It should also be noted that pet insurance companies don't necessarily define "pre-existing conditions" the same way every time. For example, some companies provide coverage for "curable" conditions.If your pet needs expensive surgery or treatment, you may only receive a fraction of the cost back from the insurance company.

Pet insurance can be a great way to protect yourself from costly vet bills in an emergency. So, do your homework and shop around to find the best policy for your pet.

Key Features of Top Pet Insurance Plans

Pet insurance plans may differ when it comes to specifics, but in general you'll want to look for a policy that provides as much coverage as possible, with few exceptions or exclusions.

Comprehensive Coverage Options

Comprehensive pet insurance will cover both accidents and illness, and some even include preventive care like wellness checkups. In general, you should purchase the policy that offers the most comprehensive coverage — especially if you foresee any issues arising with your pet. 

A comprehensive pet insurance policy will cost more than an accident-only plan, but it should still be relatively affordable, and it could make a big difference if your pet needs care down the line.

Customizable Policies and Deductibles 

Most pet insurance plans let you customize coverage (to include or exclude things like wellness visits) and customize your deductible. You can choose to pay a higher deductible, which will lower your monthly pet insurance payment, or you can pick a lower deductible, which will mean a higher monthly premium. The best option for you really depends on your financial situation and whether you expect large vet bills anytime soon.

Cost Consideration for Pet Insurance

Premiums and value for money.

Cost is one of the primary considerations when choosing a policy for your pet. The best pet insurance policy will save you more money than you spent on premiums.

You'll want to find policies that cover the most costs while charging the least. This could mean finding the most comprehensive policy or reducing your coverage for a smaller monthly premium. For example, accident-only coverage is often far cheaper than comprehensive coverage. You can find our guide on the best cheap pet insurance here.

On the other hand, you may also opt for a policy that has preventative care coverage. This can cost more than a standard policy, but can prevent your pet from getting sick, saving you money in the long run.

Discounts and Savings Opportunities

Unfortunately, the cost of pet insurance is largely out of your control, dependent on your pet's breed and age. That said, there are ways that you can still save without influencing the underwriting process. For one, you can opt for multi-pet insurance as many of the best multi-pet insurance companies offer discounts of up to 10%.

Additionally, some of the larger companies that offer multiple types of insurance may allow you to bundle your pet insurance with other types of insurance, like auto or home. 

Frequently Asked Questions About Pet Insurance in California

You may want comprehensive pet insurance if your pet is older or more likely to get sick or injured. Ultimately, the best decision for you and your pet depends on your circumstances. You should also compare the cost of pet insurance premiums compared to potential pet care costs.

Several pet insurance companies have discounts for insuring multiple pets, usually between 5-10%. This could be a great option to save money while insuring all your furry friends.

Yes, in general, pet insurance is worth the investment for most pets. It provides financial protection against unexpected conditions that could otherwise cost you a lot out of pocket.

Pet insurance generally excludes treatments for incurable pre-existing conditions (those that have already been identified and diagnosed), routine wellness checks, and elective procedures. Pet insurance will also exclude treatments for intentional injury and some may exclude a treatment for an accident that has been covered recently. Some pet insurance policies also exclude pets above a certain age. 

No, pet insurance isn't effective immediately. All pet insurance providers have a waiting period before the policy's coverage takes effect. Illness insurance usually takes longer, usually two weeks, to kick in than accident coverage, which can take as little as 24 hours to take effect.

Why You Should Trust Us: Criteria for Choosing the Best Pet Insurance

When it comes to pet insurance, there are a lot of providers from which to choose. So how do you know which one is the best for your pet?

We reviewed 30 pet insurance providers for our guide on the best pet insurance. The factors we considered included, but were not limited to:

• Plan coverage limits
• Exclusions (such as pre-existing conditions or hereditary conditions) and exceptions
• Flexibility of policy (customizations to deductibles, percent reimbursed, and coverage limits)
• Policy pricing
• Available add-ons
• Customer reviews and satisfaction

We started by looking at what type of coverage each provider offers. We focused on companies that provided good coverage options and rates, as well as customer service that is friendly and helpful. Finally, we compared plan rates to ensure these providers offered affordable coverage.

You can learn more about how Business Insider rates pet insurance products .

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Harris Chooses Walz

A guide to the career, politics and sudden stardom of gov. tim walz of minnesota, now vice president kamala harris’s running mate..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

Hey, it’s Michael. Before we get started, I want to tell you about another show made by “The New York Times” that pairs perfectly with “The Daily.” It’s called “The Headlines.” It’s a show hosted by my colleague, Tracy Mumford, that quickly catches you up on the day’s top stories and features insights from “The Times” reporters who are covering them, all in about 10 minutes or less.

So if you like “The Daily”— and if you’re listening, I have to assume you do — I hope that means you’re going to “The Headlines” as well. You can now find “The Headlines” wherever you get your podcasts. So find it, subscribe to it, and thank you. And now, here’s today’s “Daily.”

From “The New York Times,” I’m Michael Barbaro. This is “The Daily.”

[MUSIC PLAYING]

Today, the story of how a little known Midwestern governor became Kamala Harris’s choice for a running mate. My colleague Ernesto Londoño walks us through the career, politics, and sudden stardom of Governor Tim Walz of Minnesota.

It’s Wednesday, August 7.

Ernesto, over the past few days, we watched Vice President Harris bring the final three contenders for her running mate to her house in Washington, DC, for a set of in-person interviews. And then we watched as she seemed to narrow her pool of choices down to a final two — the governor of Pennsylvania, Josh Shapiro, and the governor of Minnesota, Tim Walz. And now, of course, we know that she has made her choice. What has she told us about her campaign strategy, the way she views this race, in ultimately choosing Tim Walz?

Michael, I think what the choice tells us is that Kamala Harris was drawn to two qualities that Governor Walz brings to the table. And what’s interesting is they may seem to be in tension. For starters, here’s the ultimate everyday man, somebody who grew up in a small town in Middle America, served in the National Guard, was a high school teacher, a football coach, very plain-spoken, goes to campaign events wearing T-shirts and baseball caps, is a gun owner and very proud about it. He sort of embodies the Midwest.

And she clearly thinks that that is going to bring the kind of moderate, white, working class voters that the campaign needs in swing states to come to them, to make this feel like a balanced ticket and something that will give her enough of the crucial votes to defeat Donald Trump in the fall.

On the other hand, as governor, he passed a slew of pretty progressive legislation in the past couple of years, everything from abortion rights to gun control. So these things are likely to appeal to bread and butter Democrats.

But the question is, when voters have examined these two facets of Tim Walz, may it bring them enough enthusiasm from the base and enough undecided voters that the campaign desperately needs, or at some point, do these two aspects of him start canceling each other out?

Right. In short, you’re saying Harris is betting on a dual appeal from Walz to two essential constituencies, but the risk is that the appeal to one of them is just much, much greater than to the other.

Right. You could definitely see a scenario where voters, once they’ve examined Tim Walz’s story and legacy, may conclude that both of these candidates are quite liberal.

OK, so tell us the story of Tim Walz, a story that I think a lot of us don’t know because we really don’t know Walz all that well, and how he has come to embody these two qualities and that tension that you just described.

Michael, the origin story of Tim Walz’s political career is quite fascinating.

He and his wife were teachers in a small city south of Minneapolis. And in 2004, when George W. Bush was running for re-election, Walz took a group of his students to a political rally in his hometown. They wanted to just see the president make his case. And a strange scuffle happened when they were trying to get in.

Well, one of the kids had a John Kerry sticker on his wallet. And this is where the individual says, well, you’re not going to be allowed to enter. You’ve been deemed a threat.

Apparently, one of the students had a sticker for Bush’s rival, John Kerry, on his wallet. And security officials at the rally didn’t want to let them in.

And I said, oh, it’s OK. They’re with me. And who are you? And I said, I’m Tim Walz. I’m their teacher here, and showed them my ID. And they said, well, you two have been deemed a threat to the president. And I said, well, that’s not true. And it kind of escalated.

And this really ticked off Tim Walz. He was really upset. There was a fight and a confrontation at the rally.

At this point in time, I’m kind of nervous. I’m getting arrested. So I’m like saying, well, I’m Teacher of the Year in Mankato. And they didn’t care about that. And it was kind of a sad epiphany moment, how it felt for people to be looked right through by people. These people didn’t see me. And this is happening.

And ultimately, he sort of walks away from this moment feeling really sick of the Bush administration, the politics of the day. And he turns around and volunteers for the Kerry campaign.

And then the more interested he becomes in politics in this era, he starts looking around his congressional district, and there’s a Republican who’s held the seat for many, many years. This was a largely rural district in southern Minnesota. And there’s no reason to believe that a newcomer to politics, somebody without a donor base, could make a run for this seat and win.

But Walz signs up for this weekend boot camp, where expert campaigners train newcomers who want to run for office. And he gets really enthused by the idea that he can pull it off. So he starts raising money with the support of an army of students who become so thrilled and energized by the prospect that their nerdy and kind geography teacher is making this uphill bid for a congressional race.

So his campaign staff is basically his former students.

That’s right. And he proves to be a formidable candidate. He draws a lot of attention to his experience in the classroom and as a coach.

When I coached football, these stands held about 3,000 people. That’s a lot. It’s also the number of American soldiers who have died fighting in Iraq.

He’s a very strong advocate for pulling out of the war in Iraq.

Serving right now are kids that I taught, coached, and trained to be soldiers. They deserve a plan for Iraq to govern itself, so they can come home.

And one thing that happens in the campaign that is really surprising to people is he comes out as being in favor of same-sex marriage. Now, it’s useful to remember that this is 2006, when the vast majority of Democrats, Democrats running for most elected office, were not ready to come out in favor of same-sex marriage.

And here’s a guy who’s new to politics, who’s trying to unseat a Republican who’s held on to his seat for more than 12 years, taking what appeared to be a reckless position on something. And when he was asked about it at the time, Tim Walz told a supporter, this just happens to be what I believe in. And I’d rather lose a race that I’ve ran being true and consistent to my values than try to run as somebody I’m not.

And of course, he wins.

Yes. To everybody’s surprise, he pulled it off.

So from the get-go, he shows a kind of maverick, “politics be damned” quality, taking stands that he knows may be unpopular among the voters he’s trying to win over. But he’s got some innate political gifts that are all making it work.

Yeah, I think that first campaign showed us that Tim Walz had real political chops. He was a very effective campaigner. And people really liked him. When he was knocking on doors, when he was introducing himself to voters, they saw him as somebody who was very genuine and who was admirable.

So once he gets elected in this conservative leaning district in Minnesota, what does he actually do in Congress?

In Congress, he develops a reputation for being somebody who can work across the aisle. And this is a period where Democrats and Republicans were deeply polarized over the Iraq War. He spends a lot of his time lobbying to expand benefits for veterans, so it’s easier for them to go to college after their service, and also becomes a leading voice in the quest to repeal Don’t Ask, Don’t Tell, the policy that prohibited openly gay servicemen from serving in uniform.

And he remained really popular. He easily won re-election five times. The last time he runs for his seat happens to be 2016, when President Trump wins his district by about 15 points.

And still, voters kept Tim Walz in office.

I think it’s important to note what you just said. Walz is distinguishing himself as a Democrat who can take some pretty progressive positions, as he did in that first campaign on gay rights, as he did with Don’t Ask, Don’t Tell, and keep winning in very Trump-friendly districts of his state.

That’s right. And as he’s serving his sixth term in office, he sets his sights on the governor’s mansion and decides to run for office in 2018. He wins that race easily. And early on, during his time as governor, the eyes of the world are on Minnesota after a police officer kills George Floyd. And what we see is massive looting and protests in Minneapolis.

Right, and remind us how Governor Walz handles that violence, those protests.

Yeah, I think that’s a crucial chapter in Tim Walz’s political career and one that will come under scrutiny in the days ahead.

After George Floyd was killed on a Monday —

People are upset, and they’re tired. And being Black in Minnesota already has a stigma and a mark on your back.

— protests took root in Minneapolis.

Y’all want to sit out here and shoot off your rubber bullets and tear gas.

And they got progressively larger and more violent.

There comes a point where the mayor and the police chief in Minneapolis plead for help. They ask the governor to send in the National Guard. And crucially, that request was not immediately heeded.

This is the third precinct here. There are fires burning to the left of it at the —

And at the height of the crisis, a police precinct building was abandoned.

There’s someone climbing up the wall right now, kicking the window in, trying to climb up the wall.

Because city officials grew concerned that protesters were about to overrun it and may attack the cops inside their own turf.

[EXPLOSIONS]

And the building is set on fire.

Right, a very memorable image. I can recall it happening in real-time.

Yeah, and in the days that followed, I think there were a lot of questions of why the governor didn’t send in troops earlier and whether a more muscular, decisive response could have averted some of the destruction that spread through the city.

And how does Walz end up explaining his decision not to send in the National Guard more quickly?

The governor and his administration have said that they were really, really dealing with an unprecedented challenge. And I think there was a concern that sending in troops into this really, really tense situation could have done more to escalate rather than pacify things on the street.

But in the weeks and months that followed, there were a lot of questions about Governor Walz’s leadership. And there were critics who said, during what may have been the most challenging week of his life, we saw a governor who was indecisive and who waited too long to send in resources that ultimately allowed the city to get to a semblance of order.

Right, and it feels like this is a moment that will almost assuredly be used against him by Donald Trump and JD Vance, the Republican ticket, which has made law and order so central to their message in this campaign.

Yeah, absolutely. And here in Minnesota, that was certainly a liability for him when he ran for re-election in 2022. But voters kept him in office, and he won that race handily. And not only did he win, but Democrats managed to flip the Senate and have full control of the legislature on his watch.

And that sets in motion one of the most productive legislative sessions in Minnesota history, where Tim Walz and his allies in the House and the Senate managed to pass a trove of really progressive legislation, oftentimes on a party vote.

Tell us about some of that legislation.

Well, Minnesota becomes the first state in the wake of the Supreme Court ending the constitutional right to abortion to actually codify this right under state statute. And they did a lot more stuff. They had a huge budget surplus, and they used that, for instance, to fund meals for all school children.

They managed to pass a couple of gun control laws that were very contentious. They gave the right to undocumented immigrants to get driver’s licenses. They legalized recreational marijuana. And finally, the governor takes a pretty bold stance on this issue of gender affirming care for transgender kids and teenagers, and says that Minnesota will be a safe haven for people who want that health care.

So, Ernesto, so how should we think about that blitz of legislation and the largely progressive tone of it, given the way that Walz had campaigned and succeeded up to that moment as somebody with such broad appeal across the political spectrum?

When the governor was asked whether this had been too much too quickly in terms of progressive legislation, his answer was that these were broadly popular policies, that these are issues Democrats had campaigned on. And here, Democrats had a window of opportunity where they were in control of the governor’s mansion and control of the House, the Senate, and that when you have political capital, you spend it.

But when you start listening to Republicans in Minnesota, they say, here’s a guy who campaigned on this mantra of “One Minnesota.” That was his campaign slogan. And he sort of came into office with this promise that he would govern in a bipartisan way, reach across the aisle.

But when they had all the votes they needed to pass their policies, Republicans felt that Walz was not bothering to bring them into the fold and to pass legislation that was going to be palatable to conservatives in the state. So I think people who once regarded him as a moderate now start seeing him as somebody who, when he had the power, acted in ways that were really progressive and liberal.

So at the height of his power, Governor Walz emerges as somebody who, when given a shot at getting done what he really wants to get done with a Democratic legislature, is a pretty progressive leader, even at the risk of being somewhat at odds with his earlier image as more moderate, because in his mind, enough people in the state are behind these policies.

Yeah, and I think he assumed that he had banked enough goodwill and that people across the state liked him enough to tolerate policies they may have disagreed with. And I think it’s safe to say, among the people who cover him here regularly, there was never any real hint that Tim Walz was eyeing a run for higher office. He’s not somebody who has written the kind of political memoir that oftentimes serves as a case of what you would bring to a national ticket or to the White House. And he seems pretty happy with a state job.

So it was a huge surprise when Tim Walz starts going viral through a string of cable news appearances right after President Biden drops out of the race, and the Democrats are scrambling to put Harris at the top of the ticket. And what becomes clear is that Walz is very forcefully auditioning for the role of vice president, and Vice President. Harris starts taking him very seriously.

We’ll be right back.

So, Ernesto, tell us about this cable news audition that Governor Walz undertakes over the past few weeks and how, ultimately, it seemed to help him land this job of being Harris’s running mate.

I think Walz does something really interesting, and that is that he says that Democrats shouldn’t be talking about Trump and Vance as existential threats. He kind of makes the case that Democrats have been in this state of fear and paralysis for too long, and that it’s not serving them well. So the word he latches onto is “weird.”

Well, it’s true. These guys are just weird.

It is. It is.

And they’re running for he-man women hater’s club or something. That’s what they go at. That’s not what people are interested in.

And I think one other thing we see in Walz is somebody who’s putting himself out there as a foil to JD Vance.

That angst that JD Vance talks about in “Hillbilly Elegy,” none of my hillbilly cousins went to Yale, and none of them went on to be venture capitalists or whatever. It’s not —

I think the case he’s making is that Tim Walz is a more authentic embodiment of small town values.

What I know is, is that people like JD Vance know nothing about small town America. My town had 400 people in it, 24 kids in my graduating class. 12 were cousins. And he gets it all wrong. It’s not about hate.

And behind the scenes, people from Tim Walz’s days on Capitol Hill start calling everybody they know in the Harris campaign and the Harris orbit and saying, here’s a guy who has executive experience as governor, but also somebody who has a really impressive record from his time on Capitol Hill and somebody who could be an asset in helping a Harris administration pass tough legislation. So you should take a hard look at this guy.

Which is, of course, exactly what Harris ends up doing. And I want to talk for a moment about how Harris announces Walz as her running mate on Tuesday morning. She did it in an Instagram message. And it felt like the way she did it very much embraced this idea that you raised earlier, Ernesto, that Walz contains these two appeals, one to the Democratic base, one to the white working class.

Harris specifically cites the work that Walz did with Republicans on infrastructure and then cites his work on gun control. She mentions that he was a football coach and the founder of the high school Gay Straight Alliance. She’s straddling these two versions of Walz.

But I want to linger on the idea for a moment of Walz’s vulnerabilities, because once he becomes Harris’s running mate, Harris and Walz are going to lose a fair amount of control over how they present him to the country, because he’s going to become the subject of very fierce attacks from the Republicans in this race. So talk about that for just a moment.

Yeah, I mean, it’s important to keep in mind that Governor Walz has never endured the scrutiny of a presidential race. So the questions he’s going to be asked and the way his record is going to be looked at is going to be different and sharper. I think the Harris campaign is billing him as, first and foremost, a fighter for the middle class. And I think that certainly will have some appeal.

But I think in coming days, there’s going to be a lot of attention drawn to parts of his record that may be unpopular with many voters. For instance, giving undocumented immigrants driver’s licenses, which Governor Walz championed. It’s likely to provide fodder for an attack ad.

The very dramatic footage of Minneapolis burning in 2020 is also something that I think people will be drawn to. And there’s going to be interest in reexamining what the governor did and what he could have done differently to avert the chaos.

And on Tuesday, we saw that the Trump campaign wasted no time in trying to define Tim Walz as soft on crime, permissive on immigration policy. And they also made clear they wanted to relitigate the era of George Floyd’s killing. And specifically, they want to try to tie him to the effort at the time to defund the police, which is a movement that Walz personally never endorsed.

So the Republican attack here will be pretty simple. Walz is liberal. Harris is liberal. So, in their efforts to speak to especially white working class and rural voters in swing states, the Trump campaign is going to say this is not the ticket for that group of voters. This is the ticket of burning police precincts and gun control. And of course, that may not be fair, but that’s very likely going to be the message over the next couple of months.

Right. I think there’s going to be effort to portray him as a radical liberal who has used his small town roots to put on this sort of veneer of being a moderate and a really sort of understanding and being part of the segments of the electorate that I think are critical in this election.

I want to speak for just a moment about the person Harris did not pick when she chose Walz because many Democrats had felt that Walz was a potentially too liberal seeming running mate for a candidate, Kamala Harris, who herself comes from a blue state and is caricatured by the Republicans as liberal herself.

And the person she didn’t choose was Governor Josh Shapiro of Pennsylvania, who was seen as having a huge appeal in that particular key swing state, but also presented risks of his own of alienating parts of the Democratic base with his well-documented support for Israel and his criticism of campus protesters. How should we think about the fact that, ultimately, Harris chose Walz over Shapiro?

Yeah, I think in the final stretch of this campaign to be the vice presidential pick, we started seeing a lot of acrimony in pockets of the Democratic base, drawing attention to the fact that Governor Shapiro could be divisive on Gaza, which has really sort of split the party in recent months.

So I think at the end of the day, they made a calculation that Tim Walz would be more of a unifying figure and would be somebody who would inspire and energize enough pockets of the electorate that they need, particularly in the Midwest, to make him the stronger and more exciting pick and somebody who wouldn’t force them to go back to defending and relitigating the Biden administration’s record on Israel and on the war in Gaza.

Right, and then, on Tuesday night, we got our first glimpse of Harris and Walz together on stage for the first time at a campaign rally. I’m curious, what struck you about their debut together.

Good evening, Philadelphia.

I think everybody was watching the opening scene of this rally to see what the chemistry between these two people was going to be like. And they both seemed giddy. They were literally, at times, bouncing with enthusiasm.

Since the day that I announced my candidacy, I set out to find a partner who can help build this brighter future.

So Pennsylvania, I’m here today because I found such a leader.

Governor Tim Walz of the great state of Minnesota.

They soon got down to business. And that business was how to define Tim Waltz for voters who don’t know him well.

To those who know him best, Tim is more than a governor.

And right off the bat, we saw that Kamala Harris really highlighted a lot of pieces of his pre-political career.

To his former high school football players, he was Coach.

She repeatedly called him Coach Walz, Mr. Walz, evoking his time in the classroom, and even used his military title from his days in the Army.

To his fellow veterans, he is Sergeant Major Walz.

And then when it came time for Tim Walz to introduce himself on this massive stage —

Welcome the next vice president of the United States, Tim Walz.

— he drew a lot of attention to his small town roots.

I was born in West Point, Nebraska. I lived in Butte, a small town of 400.

He said something that he said repeatedly recently in campaign appearances, which is —

In Minnesota, we respect our neighbors and their personal choices that they make. Even if we wouldn’t make the same choice for ourselves, there’s a golden rule — mind your own damn business.

The golden rule of small towns is you mind your own damn business, which is something he said in the context of his argument that Republicans have been limiting, rather than expanding, people’s rights. But he also drew attention to the fact that he’s a gun owner.

By the way, as you heard, I was one of the best shots in Congress. But in Minnesota, we believe in the Second Amendment, but we also believe in common sense gun violence laws.

And then when it came time to draw a sharp contrast with their opponents, Tim Walz said, these guys are phonies.

Donald Trump is not fighting for you or your family. He never sat at that kitchen table like the one I grew up at, wondering how we were going to pay the bills. He sat at his country club in Mar-a-Lago, wondering how he can cut taxes for his rich friends.

He said it’s actually people like me and Kamala Harris who come from humble origins and showed what is possible in America when you hail from a working class background, and you seize opportunities that were available to you.

Thank you, Philadelphia. Thank you, Vice President. God bless America.

So when it comes to this question of Walz’s dual identities and dual appeals, what did we learn on day one of this new Democratic ticket, do you think?

I think the campaign is trying to convey that these two facets of Tim Walz’s life are not mutually exclusive, that they don’t need to be in tension. They don’t cancel each other out. They’re both part of Tim Walz’s story. And I think that’s how they’re going to present him from now until Election Day.

Ernesto, thank you very much. We appreciate it.

It’s my pleasure, Michael.

Here’s what else you need to know today. On Tuesday, Hamas said that Yahya Sinwar, one of the masterminds behind the deadly October 7 attacks on Israel, had consolidated his power over the entire organization. Until now, Sinwar had held the title of Hamas’s leader in Gaza. But with the assassination of Hamas’s top political leader by Israel last week, Hamas said that Sinwar would take on that title as well. Sinwar remains a major target of Israel and is believed to have been hiding in tunnels underneath Gaza since October 7.

And the US Department of Justice has charged a Pakistani man with ties to Iran with trying to hire a hitman to assassinate political figures in the United States. The man recently traveled to the US and was arrested in New York last month. American authorities believe that his potential targets likely included former President Trump.

Today’s episode was produced by Alex Stern, Eric Krupke, and Olivia Natt. It was edited by Lisa Chow and Patricia Willens, contains original music by Pat McCusker and Marion Lozano, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Nick Pittman and Minnesota Public Radio.

That’s it for “The Daily.” I’m Michael Barbaro. See you tomorrow.

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Earlier this summer, few Democrats could have identified Gov. Tim Walz of Minnesota.

But, in a matter of weeks, Mr. Walz has garnered an enthusiastic following in his party, particularly among the liberals who cheer on his progressive policies. On Tuesday, Vice President Kamala Harris named him as her running mate. Ernesto Londoño, who reports for The Times from Minnesota, walks us through Mr. Walz’s career, politics and sudden stardom.

On today’s episode

Ernesto Londoño , a reporter for The Times based in Minnesota, covering news in the Midwest.

Background reading

Who is Tim Walz , Kamala Harris’s running mate?

Mr. Walz has faced criticism for his response to the George Floyd protests.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Michael Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Maddy Masiello, Isabella Anderson, Nina Lassam and Nick Pitman.

An earlier version of this episode misstated the subject that Walz’s wife taught. She taught English, not Social Studies.

How we handle corrections

Ernesto Londoño is a Times reporter based in Minnesota, covering news in the Midwest and drug use and counternarcotics policy. More about Ernesto Londoño

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