Thinking of starting an automotive business? It can be a profitable venture, but there are some things you need to be aware of before you make an investment.
The Future of Automotive Shops
Consumer preferences, environmental considerations, and new technology are rapidly reshaping the automotive industry. Car sharing and the rise of e-hailing are expected to put a dent in new car sales, according to McKinsey & Company, a market research firm. Experts predict one out of every 10 cars sold in 2030 will be a shared vehicle. High gas prices are prompting more people to shop for electric or hybrid vehicles to cut costs. Many of the major players in the auto industry, including BMW, Ford, and Hummer, have new models of electric vehicles on the market.
Despite sluggish new car sales, the auto repair industry continues to thrive as it adapts to meet changing customer demands. With the average age of cars on the road reaching 12.2 years in 2022, the market for auto repair is strong. Auto shops need to stay nimble and be prepared as the industry evolves.
What Do I Need to Know?
Achieving your dream of starting an automotive business in the aftermarket automotive industry is within reach. Focusing on the realities and demands facing the progressive auto industry can point you in the right direction and help make informed decisions. Make sure to ask the right questions before you get started.
What are the startup costs? Similar to opening any new business, opening an auto repair shop can be costly. Finding the right location, buying equipment, and securing quality mechanics takes time and money. Before you embark on your venture, it’s essential to create a business plan with detailed cost estimates to eliminate unexpected expenses. Startup costs differ depending on the brand or co-brand. However, to start your own shop, the startup costs would be higher as independent entrepreneurs do not have the buying power that a franchise owner would. As the support center, Moran’s team helps with finding a location, laying out startup costs, buying equipment, and all other aspects of opening your business.
Do I need to pick a specialty? Many auto shops focus on one or two services, such as a quick-lube location or a tire shop. Specializing can help streamline operations, but it will limit your ticket prices and make it difficult to drum up consistent repeat business. As new car technology improves and the number of electric cars on the road rises, opening a one-stop-shop for car care is an advantageous investment.
Moran’s co-brand Mr. Transmission/Milex Complete Auto Care is the perfect one-stop-shop to bring in customers with all types of automotive repairs. In addition to having a wide customer base, a one-stop-shop is great for repeat customers.
How do I promote my business? Building a loyal customer base is an important step for any successful automotive repair shop. Marketing and advertising your business on a variety of platforms will help drive customer traffic. Digital advertising is one of the best ways to get the word out about your services. Referral programs, social media marketing, and email advertising are inexpensive tools to add loyal customers. Most franchise owners also participate in a marketing program to alleviate some of the headaches of setting up a shop. Moran helps alleviate the marketing headache by offering support services like marketing plan assistance, social media management, and much more.
Should I start a business from scratch? Starting an automotive business can be risky. Building relationships with customers and juggling all the tasks you need to accomplish to get started can be a challenge. Moran’s team helps you focus on your business and keeps you on track when you are preparing to open.
Investing in a franchise allows you to open an auto repair business with a proven track record and brand recognition. Paying an initial upfront fee to open a franchise guarantees you get the training and support you need to run a potentially profitable shop. Having the support of a franchisor allows you to stay abreast of new developments in the industry to provide solid customer service.
Join a Professional Automotive Franchise
Moran Family of Brands has more than 32 years of experience as a franchisor and over 70 years in the aftermarket auto and window tinting industry. The company franchises six brands, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint.
With an initial investment starting at $118,219, Moran franchisees get the keys to a one-stop shop for automotive care. Single-brand and co-branded options are available to give franchisees an opportunity to start small and expand or dream big from the start. Moran offers training and support to help franchisees find skilled technicians and provide quality service in a trustworthy atmosphere. The support team helps guide entrepreneurs as they find a location, market their new venture, and build their customer base. Moran also makes it a priority to maintain open lines of communication with our franchise owners to help them achieve their dreams as business owners for themselves but not by themselves.
To learn more about franchise opportunities with Moran and to request more information, fill out the online form to request information and schedule a time to connect with a franchise business consultant.