Auto Repair Shop

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Executive Summary

Trusted Wrench Auto Repair is an independent auto repair shop serving drivers in our city. We handle maintenance, brakes, suspension, diagnostics, air conditioning and general repairs on most makes and models. Car trouble is stressful, and many drivers worry about being overcharged or sold repairs they do not need. Many shops are slow, hard to reach or do not explain the work. We will win customers by explaining problems in plain words, showing worn parts, giving written estimates and finishing when we say. Here is what our numbers show. We expect sales of about $307,800 in Year 1, growing to about $1,027,500 by Year 5 as we add technicians and more repeat customers. We expect a loss of about $28,500 in Year 1 while we build our customer base, then a profit from Year 2 (about $23,200), growing to about $100,900 by Year 5. We need $121,000 in total. That covers $70,600 in startup costs (a vehicle lift, tire and diagnostic equipment, tools, a small shop build-out, opening parts, certifications, insurance, a sign and a lease deposit) and a cash cushion of about three months of bills. I am putting in $25,000 of my own money, and I am asking for $96,000. The startup costs include a small shop build-out and a lease deposit. I am Priya Kim, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Trusted Wrench Auto Repair will be a limited liability company (LLC) in Arkansas, owned by Priya Kim. We will work from a leased shop with two bays, a small office and parking. What we believe. Fix what is broken, explain it clearly, give a written estimate before the work and never sell a repair we do not need. What we offer:
- Oil changes, tune-ups and maintenance. - Brakes, steering and suspension. - Engine and electrical diagnostics. - Air conditioning service. - Pre-purchase inspections and fleet maintenance. Licenses and insurance. Auto repair is regulated in many states, with a registration or license for repair shops, written estimate rules and consumer protections. Our state requires repair shops to register with the consumer protection agency and give written estimates. We follow environmental rules for used oil, coolant and old parts, and anyone who handles refrigerant must hold EPA Section 609 certification. We carry general liability and garagekeepers insurance, which protects customers' vehicles in our care, and workers' compensation once we hire. Where things stand today. I have worked as a technician for nine years, I hold ASE certifications, I have repaired cars for friends and neighbors and I have looked at three shop spaces.

Problem & Opportunity

Drivers near us want honest repairs at a fair price. 1. Overcharging. Many customers worry they are paying too much or for repairs they do not need. 2. No explanation. Shops often do not show the problem or explain the options. 3. Slow turnaround. Cars sit for days waiting for parts or attention. 4. No warranty. Some shops do not stand behind their work. How we know people want this. Forty customers follow me from my current shop, and two small businesses asked about fleet maintenance.

Products & Services

What we sell. 1. Labor. Time spent diagnosing and repairing vehicles. Our plan assumes an average of about $120 per labor hour in Year 1, rising to about $135 by Year 5. Direct costs run about $35 per hour. We expect about 900 labor hours in Year 1 (about 18 a week), growing to about 2,700 a year by Year 5. 2. Parts, marked up. Parts we supply for repairs, sold at a fair markup. Our plan assumes an average of about $235 per part sale in Year 1, rising to about $255, and the parts cost us about $150. We expect about 850 part sales in Year 1, growing to about 2,600. Our prices. Labor $115 an hour. Oil change from $60. Brake job from $250 per axle. Diagnostic $95. How it works for the customer:
1. An easy appointment, or a drop-in for a quick check. 2. A clear diagnosis, with worn parts shown, and a written estimate before the work. 3. The repair done well, with a call if anything changes. 4. A road test, a clean car and a warranty on parts and labor. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 48% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Daily drivers who need maintenance and repairs. - Owners of older cars who want honest advice. - Small businesses and delivery drivers with several vehicles. - Buyers who want a pre-purchase inspection. Where we will work. A shop on a main road on the south side, near several neighborhoods, with parking and easy access. Season. Auto repair is steady all year, with extra demand before winter and summer trips. Maintenance plans and fleet accounts help smooth the slower weeks. Our plan is careful on purpose. About 18 labor hours a week in Year 1 is a pace the owner and one technician can handle well.

Competitive Landscape

Other choices customers have:
1. Larger repair chains and dealerships. Metro Auto Care (a made-up name) charges about $130 an hour; known for convenience, but quick to recommend big repairs. 2. Other independent shops. We compare their prices, hours and reviews. 3. Doing it yourself. Cheaper for simple jobs, but not for diagnostics and larger repairs. How we will win customers: honest advice, clear written estimates, careful work, quick turnaround and a warranty on our work.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with reviews, and a simple website with online booking. - Asking every happy customer for a review and a referral. - Relationships with body shops, tire shops, car dealers and tow companies. - Maintenance reminders by text or email. - Offers for first-time customers and fleet accounts. Marketing budget. About $6,000 a year. The sign, logo and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Cars and jobs. The owner writes estimates, assigns work and does repairs. In Year 1 the owner works with one technician, and we grow to five by Year 5. Each car has a repair order, an estimate, a test drive and a final inspection. Equipment. About $40,000 to start: two-post vehicle lift; tire changer and wheel balancer; scan tools and diagnostic equipment; a/C refrigerant recovery machine; hand and power tool sets; air compressor and air tools; brake lathe and presses; jacks, stands, creepers and parts washer; computer, shop management software and point-of-sale. We set aside about $5,000 to $8,000 a year for repairs and replacements. Upkeep. Lifts, tire machines and tools inspected and serviced on schedule, scan tools updated and the shop kept clean and organized. Safety. Safe lifting and support of vehicles, eye and ear protection, careful handling of fluids and refrigerant, fire extinguishers and a clean floor. Used oil and waste are stored and disposed of as the law requires. Running costs in Year 1: shop rent and utilities about $36,000, marketing about $6,000, insurance and admin about $9,000. Scheduling and billing. Shop management software that handles estimates, invoices and customer reminders.

Management & Organization

Who runs the business. Priya Kim, owner. As owner I will repair cars, write estimates, manage the shop, order parts and handle the money side of the business. I plan to pay myself $58,000 a year in salary in Year 1. Crew. Technicians at about $48,000 a year each (or part-time pay): one in Year 1, two in Year 2, three in Year 3, four in Year 4 and five in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Frank Brooks serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: sign the lease, get licenses and insurance, prepare the shop, buy and install the lift and tools, and open. Target start: April 2027. - First year: complete about 900 labor hours and 850 part sales, for about $307,800 in sales. - Year 2: add a second technician, about $523,500 in sales, and a profit of about $23,200. - Years 3 to 5: grow to five technicians and about $1,027,500 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: cars in and out, labor hours billed, comebacks, parts costs, reviews, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $121,000. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $70,600, listed item by item in the Startup Costs section (about $40,000 for the lift, tire machine, scan tools, tools and shop software, $8,000 for lighting, paint and restroom, $6,000 for opening fluids, filters and parts, $1,200 for the business license, repair shop registration and refrigerant certification, $6,500 for insurance and used oil handling setup, $900 for entity formation, lease review and bookkeeping, $3,500 for the sign, logo and website, and $4,500 for the lease security deposit). - A cash cushion of about $50,400: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $121,000 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $25,000. - Amount requested: $96,000. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect a loss of about $28,500 in Year 1 while we build our customer base, then a profit from Year 2 (about $23,200), growing to about $100,900 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,419 a month are already included in our cash flow. What we are offering the lender: our equipment and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start with a mobile service doing oil changes, brakes and simple repairs on evenings and weekends, while keeping your current job. Startup can be under $4,000. - Phase 2: once you have regular customers, rent a small shop, buy the lift and diagnostic tools and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Your lease or letter of intent, if you have one. - Quotes for the equipment and build-out. - Your menu or price list. - Photos of your product or past work, if you have them. - Your technician certifications (such as ASE), if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Labor: about $120 per labor hour in Year 1, rising to $135; about $35 per labor hour in direct costs; about 900 labor hours in Year 1, growing to 2,700. - Parts (marked up): about $235 per part sale in Year 1, rising to $255; about $150 per part sale in direct costs; about 850 part sales in Year 1, growing to 2,600. - Owner salary: $58,000 a year. Crew: $48,000 a year each, from one in Year 1 to five in Year 5. - Other yearly costs in Year 1: shop rent and utilities about $36,000, marketing about $6,000, insurance and admin about $9,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs