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Although it's not easy, you can set up an auto repair business if you have the right information. You need self-confidence, drive and high levels of initiative.
In this guide, we've put together all the important information you need when you are ready to start an automotive repair business.
To get your automotive repair business off the ground, you may need certifications that permits you to offer your services as a mechanic.
You have to know the total projected cost you need to open and operate your automotive repair business. Therefore, you may have to create a business plan. The plan should also include a marketing strategy that might help you connect with your target audience.
To run an automotive repair business, you have to get a motor vehicle repairer licence, which has a number of requirements including that you have relevant council approval and the financial resources to start a business. You will also need a Certificate III in Light Vehicle Mechanical Technology. The fee for completing this course is usually $14000 and the duration is one year.
You also need a mechanic apprenticeship before you can start running your automotive repair business. This is a four-year program that allows you to learn the skills you need in a practical setting.
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For you to open and operate an automotive repair business, you will need equipment some of which includes:
Before you start operating an automotive repair business, you have to get an Australian Business Number (ABN). This eleven-digit number is necessary if you want to identify yourself whenever you are doing business with other people.
Before you register for an automotive repair business, you need to choose a business structure. Depending on how you will raise your capital, you can decide to choose between the following business structures:
This type of business structure comprises one person who is the business owner. As a sole trader, you have to raise the entire capital for starting the business and run the business alone. You may decide to source administration help from your family members.
You may decide to partner with one or more people to start your automotive repair business.
A company-type of business structure is whereby a group of shareholders owns a business. The shareholders can make decisions since there are also investors of the business.
You may need to write up several legal documents before starting your automotive repair business. If you don't know how to go about this, you can find legal documents online at websites like LegalVision or Lawpath. There is a range of legal documents to suit your needs. They include:
Good marketing skills may attract customers. You may opt for online ads if you have a business website to advertise your products and services. Offering clients guarantees is one of the sure ways to win their loyalty. This means you are assuring them of doing an efficient job. You can also use word of mouth and email marketing to find customers. Online marketplaces are another way to build your client base. Some of popular platforms include:
Many automotive repair mechanics charge an hourly rate for labour and then charge for the various parts needed for a repair. Automotive repair mechanics earn between AU$24.43 and $31.04 per hour according to Payscale. This rate is separate from the spare parts that you may need to purchase for replacements.
Does my automotive repair business need management software?
Your business may need a customer relationship management (CRM) software to help make your work easier. Software that might come in hand includes 5iQ Workshop Software, ARI and Auto Repair Bill.
Do I have to wear protective gear when working?
You should wear protective gear every time you are repairing. This includes gloves, goggles and steel-capped boots.
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