Launching a successful auto repair shop is no small undertaking, but getting off on the right foot can make all the difference. Here, we’ll go over why it's crucial to establish the basics early on, the tools you'll need to run the business efficiently, and how Shopmonkey software can be your all-in-one solution.
Get Set Up Properly From The Beginning
Every new business comes with challenges, and starting an auto shop is no exception. That’s why having a solid foundation, and establishing policies and procedures from the start, are critical to long-term success. The goal, ultimately, is for these processes to become part of your company’s DNA, which you can then build upon when it’s time to scale up the business.
Making sure there’s a good, sound structure in place from the get-go also limits the chances of making mistakes and/or experiencing miscommunication down the road. Plus, it can prevent having to change course after months or years of doing things a certain way.
The Basics
Let’s start with a handful of key factors–we’ll call them non-negotiables–that absolutely should be addressed prior to starting up your service business (even before we get to questions like, “How much does it cost to open an auto shop?” or “How many bays should my shop have?”). Think of these as preliminary items on your auto shop business plan.
Business License
A business license not only allows you to operate legally in your state, it also adds credibility to your business and helps track your company for tax purposes. Note, too, that requirements vary by state: For example, California’s Bureau of Automotive Repair (BAR) requires that anyone who wants to run an auto shop register as an Automotive Repair Dealer (ARD), and renew their ARD registration each year; additional licenses are required if you decide to offer smog checks, brake work, or lamp work.
Employer Identification Number (EIN)
An EIN separates your business and personal finances and sets your business up for growth. It’s required for things like opening a business bank account, running payroll, applying for a business license, and filing tax returns. Your EIN also helps protect the business against identity theft and fraud.
Business Phone Number
Using a personal phone number for your business can cause confusion and inefficiency, and even invite security risks. A dedicated business number maintains professionalism and helps establish boundaries between your work and home life. After all, nobody wants their personal phone blowing up at 3 a.m. because a customer’s check engine light came on.
Pay Structures
Establishing employee pay structures early on not only gives your team a sense of satisfaction and security, it also helps attract and retain talent. Similarly, it’s important to clearly identify both your markup on parts as well as your labor rates. This allows you to accurately budget and forecast, and provides a measure of both transparency and financial stability that can help the business stay profitable.
Google My Business Profile
Google My Business, which is a free service that allows companies and organizations to manage how they show up on Google Search and Google Maps, can seriously improve your local search visibility and increase brand awareness, both of which are invaluable for new auto repair shops. Don’t take this step for granted–Google My Business will help local customers find you online.
Mobile-Friendly (or Mobile-Responsive) Website
Maintaining a professional and mobile-friendly–or better yet, mobile-responsive–website is pivotal in establishing trust with potential customers. An intuitive, easy-to-navigate mobile experience helps instill confidence that your shop is both reliable and cares about its clients. Along those lines, having a reputable presence online is a good indicator to customers that they can trust you to provide quality service and repairs.
The Tools (Required to Run a Business)
Don’t worry: We aren’t going to run through the list of tools a mechanic needs, or a list of equipment you need in the garage to repair vehicles. We suspect you already know how to start a mechanic business from the tooling and hardware perspective. Our focus here is on the tools required to run a business.
Establishing the right tools and processes early on can lead to long-term benefits for your shop — more efficient operations, improved organization, an enhanced customer experience, and better insights into the business.
Software and Processes That Help With Documentation
Effective documentation and record-keeping are vital for auto repair shops to protect the business and build trust among customers. They also help avoid disputes. For example, checking in each vehicle with the customer present helps establish a strong rapport from the start, further adding to your credibility and professional image as a shop that dots the i’s and crosses the t’s.
Shop Efficiency Software
Today’s software solutions can greatly enhance shop efficiency by providing tools for creating and sending estimates with digital vehicle inspections, tracking every vehicle's status, and managing your team’s schedules and appointments. They also provide real-time access to labor guides, diagrams, and procedures, among other resources. Some programs can even connect you with vendors to make parts ordering and tracking easier.
Payment Processing and Accounting
The more straightforward and convenient your processes, the more customers will be drawn to your shop. Allowing them to view and pay invoices directly from their smartphones, for example, is practically a must in today’s world. That said, any platform that accepts both online and in-person payments should also integrate with accounting software like QuickBooks, which allows you to streamline your bookkeeping, track how much time techs spend on jobs, and more.
Customer Acquisition (Marketing) Tools
One of the first questions for any startup is, “How am I going to get customers?” Google My Business is a good start, but it’s just the beginning. Enhancing your online reputation with a review management software is another important step. Beyond that, offering promotions through email or text can provide a nice bump during slow periods, along with helping to boost customer loyalty and retention year-round. Plus, enabling online appointment scheduling is key, as 70% of customers now prefer to make their appointments online, according to the Automotive Service Association.
Finding and Hiring The Right People
A shop with qualified, personable, and hard-working employees stands out from the competition. Customers want to be treated with the same care and attention you give to their vehicles, so it’s crucial to find and hire talented people to represent all facets of your business. Candidates should be vetted for the right experience, as well as softer skills like problem-solving and how well they communicate and work with others. For Will Helton, owner of University Auto & Tire in Fayetteville, AR, that means “[hiring] people that fit our culture, period. And we give those people the best resources to be wildly successful.”
What You Need to Get Started With Shopmonkey
OK, we know that was a lot. But by understanding how to start an auto repair shop on the front end, you now know what to expect going in. And here’s the key takeaway: You don’t have to subscribe to a half-dozen (or more) different software tools to run your business, because there’s actually a tool that can do it all!
Shopmonkey is an all-in-one auto repair shop software that streamlines the management and marketing of your shop, accepts payments online, facilitates parts ordering and tracking, allows you to communicate with customers, and much more. To get started, you’ll just need to set up the following:
A business license
An EIN
Commitment as a full-time shop owner
In Conclusion
Establishing the right tools and processes early on can lead to long-term benefits for your auto repair shop–more efficient operations, improved organization, an enhanced customer experience, and better insights into the business. It's also about creating a strong work culture that helps you attract and retain great employees.
With Shopmonkey, you can manage every aspect of your business under one roof, from managing orders to customer communication and so much more. Get started by scheduling a demo today, and see how our software solutions can position you and your shop for consistent, long-term success.
