Despite the abundance of car repair shops and mechanics in every city, none of them are unemployed: the domestic demand for car repair services remains open. The number of cars is growing, both new and used, and they all require technical support.
In such conditions, opening a service station seems to be a profitable area for investment. In this material we will provide a detailed business plan for a car service center from scratch, talk about the stages of development and give an approximate calculation of payback.
1. Description of the car service project 2. Relevance of the car repair business 3. Market situation 4. Analysis of the market and competitors 5. Types of service stations 6. Choosing the main area of activity 7. What do you need to get started? 8. Legal issues 9. Accreditation rules 10. Selection of premises 11. Nuances of the location of the service station 12. Equipment 13. Search for suppliers of spare parts 14. Personnel 15. Marketing plan and effective advertising methods 16. Profitability and payback of the business 17. Pros of business 18. Cons and risks 19. Business development options 20. Auto service franchise
Description of the car service project
You can really make money at a car service center. Despite the high competition in the market, the demand for auto repair services remains high and continues to grow along with the growth of the vehicle fleet in Russia.
You can start working in different formats; This car service business plan discusses the idea of opening a multifunctional car service center that will offer a wide range of services, from repairs to car washes. This will allow you to reach as many clients as possible and increase revenue.
We must warn you that it is better to open this business for a person with experience in car repair shops or with the support of such an expert.
The case will require quite large investments, more than 10 million rubles. You can implement the project yourself or with the help of franchisors.
Organizational plan
To learn how to create an organizational section, read the article on the structure of the organizational plan of a business plan.
Organizational form
For the purpose of doing business, it is planned to register an individual entrepreneur. Payment of taxes is planned according to the UTII system.
Staff structure
The staffing structure of the car service and the salary portions of wages are presented in the following table:
| Job title | Salary | Qty | Total costs | Prize |
| CEO | 25 000 | 1 | 25 000 | 20% of profits |
| Administrator | 20 000 | 2 | 40 000 | 10% of the cost of work performed during his shift |
| Auto Mechanic | 20 000 | 4 | 80 000 | 40% of the cost of work performed |
| Chief Accountant | 20 000 | 1 | 20 000 |
The total monthly deductions for the salary portion of the salary are: 165,000 rubles.
The total number of personnel is 8 people. Today there is a candidate for the position of General Director. The applicant has 25 years of experience in car repair, has experience in management and business, why was he chosen for this position.
Relevance of the auto repair business
The number of vehicles in Russia is growing every year. As of the beginning of 2020, the country's automotive fleet numbered almost 52 million units, 84% of which were passenger cars.
This directly affects the capacity of the car service market, because every car requires maintenance. service. In value terms, the market capacity is about 600 billion rubles. in year. There is potential for further expansion due to the growth of the vehicle fleet and wear and tear of vehicles.
The following services are in high demand:
- car wash;
- body repair;
- tire service
Other car services are also in demand: no one is immune from breakdowns. Car owners do not like to delay repairs, and when necessary, they immediately turn to workshops.
Relevance of the idea
Modern people value comfort and speed of movement. It is not surprising that in this regard, people choose their own car much more often than public transport. The number of cars in Russia is growing steadily every year. If in 1970 their number did not exceed 5 million, and already in the 90s there was a jump to 11 - 12 million cars. Today there are already more than 40 million.
As the number of cars increases, their number per thousand people also increases. If back in 2010, 220 people out of 1,000 had their own car, today this figure has already exceeded 300.
The constantly increasing flow of cars makes all services related to cars, including car services and car washes, relevant. Service stations attract budding entrepreneurs with a never-ending flow of customers: no one can plan or delay a breakdown. Additionally, many conscientious citizens bring cars for a thorough inspection and identification of defects.
Owners of not only used cars, but also new modern foreign cars have a need for car services. And they are not insured against sudden breakdowns.
Opening a car service center is a promising business idea that, with proper planning, will allow you to quickly achieve self-sufficiency and begin to make tangible profits. Moreover, both a small car service and a full-fledged service station can achieve this.
Market situation
Competition in the vehicle maintenance market is high: there are many single, network services and individual specialists operating in the regions of the country.
Independent services (single or network) occupy more than half of the market. Individual auto repair shops (including garage-type ones) account for about a quarter of the market capacity. Authorized dealer centers occupy a share of about 12-15%.
But the existing supply does not satisfy all the demand in those. service. The Russian economy is in crisis, which is leading to a decrease in citizens' incomes. This encourages people to save money and buy used cars, which a priori require more repairs.
Requirements for renting premises
The best option for a car service center is a modular building. The obvious advantages of this type of construction include: low cost, fast pace of construction, and also its low cost.
To provide high-quality services given in the “Project Summary” section of this article, it is necessary to organize a building divided into 5 sectors:
- car wash - 25 m2.
- maintenance and repair (3 boxes of 30 m2 each) - 90 m2.
- tire fitting work - 15 m2.
- bathroom - 8 m2.
- storage space - 15 m2.
- rest room for staff - 12 m2.
The area of the car service center is 165 m2
Market and competitor analysis
A clear trend has emerged in the market, indicating an outflow of car owners from official service centers to private companies (network and single). This is evidenced by a decrease in sales volumes from “officials” from 49 billion rubles. in 2020 to 46 billion rubles. in 2020. In 2020, a decrease to RUB 43 billion is expected.
There are several large network companies operating in Russia that have opened their branches in dozens of Russian cities. There are services specialized in trucks (for example, TRUCK CENTER), although most service stations are naturally aimed at category B vehicles.
Network companies have their own clientele, but Russians for the most part prefer to do repairs in cheaper single services or from individual craftsmen. The car service market in Russia is considered opaque: unregistered “garage” enterprises are very common (and popular) throughout the country.
Kinds
There are several types of car services:
- Repair services provided by individual craftsmen. Car maintenance takes place in a garage or in a private home. There are a huge number of such specialists and their services for the consumer will be the least expensive. The quality of the work performed will not always be high, due to the lack of necessary conditions for performing a number of operations and the necessary equipment.
- Single car services. This is the most popular market segment. The main advantage of this business format is the ideal combination of price of services and quality. Due to this, the demand for their services is quite high.
- Specialized car services. Such establishments work with a focus on a specific brand of vehicle, which significantly reduces the number of their customers. The services provided are of high quality and are aimed at a clear target group of motorists. The cost of work performed is approximately 25 percent higher than that of single car services. An authorized repair service is usually owned by car manufacturers or large official dealers.
- Network service stations. They have a branch network in individual regions or cover the entire territory of the country. At the moment, network auto repair shops are not widespread in Russia. The most famous are: “White Service”, “On Wheels. RU", "Bosch Auto Service", "Fit automaster", "TRACK .
- Ready-made franchise business. You can take advantage of a franchise offer from FitService, BoschService or Vilgud.
The first two options for organizing a service require smaller initial investments. However, they are experiencing serious competition from larger market players. This problem is especially acute in big cities.
Choosing a field of activity
The scope of activity of a car service may include repairs:
- motorcycle equipment;
- passenger cars;
- minibuses;
- trucks up to 30 tons;
- agricultural machinery.
The entrepreneur will have to decide which cars the service will specialize in repairing. These may be vehicles from foreign manufacturers, domestic ones, or both. According to statistics, the probability of breakdown of both types of machines is approximately the same.
Additional services
Main and additional areas of work of the car service:
- carwash;
- diagnostics;
- filling and lubricating types of work;
- installation of alarms and other security systems;
- repair of engine, gearbox, windows, body, battery;
- tuning;
- clutch adjustment;
- installation of car windows, tinting;
- painting;
- welding work;
- operations of installation and dismantling of vehicle components;
- troubleshooting steering problems;
- installation of musical equipment;
- balancing, tire fitting and wheel alignment.
It is almost impossible and irrational to cover one hundred percent of services in one workshop. Service owners advise that at the initial stage of business development, take several areas of activity as a basis and not get hung up on a particular brand of car. In most cases, the highest profits are received by those car services that have chosen a narrow specialization, compared to generalists.
Types of service stations
The types of auto repair shops differ both in the types of repair services and in their specific specialization. Types of services can be grouped into 4 categories.
- Official dealers. These are network services that serve cars of a specific brand. They are not found so often in Russia; The demand for the services of such dealers is moderate, including due to high prices.
- Service stations servicing vehicles of one manufacturer or a specific model. Working in this niche is risky because the business is limited to a specific group of consumers.
- Single service stations with or without accreditation. The demand for such services is high, the prices for services are much more reasonable compared to official centers.
- Car services in the garage. In unregistered service stations operating underground, inexpensive repairs can be done, but the professionalism of the workers is often not very high.
Advantages and disadvantages
Car service as a business has the following advantages:
- high demand for services;
- poor quality of roads, which affects the condition of the car;
- a large number of used cars that need repairs;
- No special knowledge is required to open a business, the main thing is to choose the right personnel;
- It’s easy to stand out among competitors due to high quality or additional services;
- relevant throughout the season;
- the opportunity to expand the business by adding new services (sale of auto parts, gluing of protective films);
- high income.
Disadvantages of an auto repair shop as a way of doing business:
- high competition;
- there may be problems finding qualified personnel;
- the success of a business largely depends on the location and quality of service;
- frequent checks;
- Start-up capital required.
Choosing the main activity
Before opening a technical station. service, it is necessary to carefully analyze the market situation, the ratio of Russian and foreign cars, the competitive environment, their focus, capabilities and prices.
Most Russians who bought a new car, after the warranty period expires, go to alternative services that offer good quality work at lower prices. And owners of used cars do not contact official centers.
This business plan discusses the project of opening a single service station with the following list of services:
- tire fitting Work with wheels: balancing, tire replacement, tire repair, etc.;
- diagnostics and repair. The auto service will work with cars of different brands. Most of the work is related to the engine and chassis;
- body work. Body repair: welding, painting, straightening;
- car wash.
What documents are needed to open a car service?
So, what does it take to open a car service? Documentation. To officially register and launch a car service, you will need a license . To obtain it you will need:
- statement;
- list of types of services;
- certificate and bank details;
- lease agreement for a plot of land for a workshop;
- charter of the enterprise;
- certificates from SES, fire inspection, from the State Tax Inspectorate regarding registration;
- orders to appoint persons responsible for TB to a security point;
- order appointing someone responsible for repairs and maintenance;
- a copy of a document certifying professional suitability and training;
- certificate of compliance with GOST standards (not mandatory for individual entrepreneurs, but the presence of a certificate gives more weight in the eyes of clients).
A list of only the most necessary documents is provided; in each specific case, it may be necessary to provide additional documents.
Quick seasonal earnings: summer business ideas for entrepreneurs, or summer as the most profitable season.
How can recycling unwanted tires become a successful business? Read our business plan.
What do you need to get started?
Opening a modern service station will require fairly large investments. The article “equipment and inventory” especially stands out - the purchase of high-quality equipment will require additional investments. It is necessary to create a stock of consumables and raw materials, but you need to remember that many parts are ordered from external services at the expense of the client.
Table 1. The amount of initial costs for opening a car service.
| Expense item | Cost, rub. |
| Registration | 25 thousand |
| Premises rental (1000 sq. m) | 900 thousand |
| Equipment and inventory | 10 million |
| Additional raw materials, consumables and supplies | 250 thousand |
| Salary, 17 people | 500 thousand |
| Additional expenses | 400 thousand |
| Total | 12.075 million |
Work and sales are expected in a city with a population of 1.5-2 million people. Additional expenses include costs for utility bills, promotion, preparation of premises, etc. The amount of tax deductions is not taken into account in the calculation.
Types of car services
We need to look through the eyes of clients. See what can be improved as a client. If you see that there are a lot of moments here, then you just need to take it and do it. There is no point in inventing a new market. Because the old markets are simply not fully saturated and not developed. Let's say a good car service. They have appointments a month in advance. But they work until 6 pm, and are closed on Saturday and Sunday. Why?
Fyodor Ovchinnikov, a famous retail entrepreneur:
Nowadays, the car has become an integral part of society. The number of automated equipment and cars is increasing exponentially from year to year, so the need for specialized maintenance services is increasing.
First of all, be sure to watch the video in which the real owner of the car service talks about the structure of the business from the inside
Opening a car service center is a promising start for a businessman. But to develop a business, you will need a detailed business plan, which this article will introduce you to.
- car services that specialize in only one brand;
- single services;
- small car services;
- network services.
It is worth noting that the first option is considered the most prestigious and profitable, but it requires certain experience and funds to successfully conduct business.
Single car services are services that provide only a certain type of service.
Network services are combined into groups and provide a whole range of services (the only drawback of such a system is the general rules of doing business, so you won’t be able to do it yourself).
There is another type of car service, less expensive than the classic one. We are talking about an individual call to the car owner. In this case, prices for renting premises and purchasing expensive equipment are significantly reduced, but the costs of advertising the services provided increase. In this case, all you need is a small office and a few cars to transport tools and mechanics to the work site.
Legal issues
First you need to choose a legal form: individual entrepreneur (individual) or LLC (legal entity).
When registering, OKVED-2 codes are indicated, the main ones being:
- 45.3 “Trade in automobile parts, components and accessories”;
- 45.20 “Maintenance and repair of motor vehicles”;
- 45.20.3 “Vehicle washing, polishing and provision of similar services.”
Some work does not require a license. For example, washing and lubrication and refueling work. For inspection and diagnostic work, painting, brake control repair, glass tinting, etc., certification is required. For normal operation, the service station must obtain the necessary permits. The full list of services subject to certification is indicated in OKUN.
It is necessary to obtain permits from the Fire Department and the Sanitary and Epidemiological Station.
Accreditation rules
If you plan to open a car service center with a technical inspection point, you will need to obtain accreditation from the state.
Rules for accreditation of technical station. services are listed below.
1. Availability of facilities and means necessary for technical diagnostics.
2. Possibility to transfer information about the results of the performed maintenance to a single automated system.
3. Availability of at least one technical expert.
To obtain accreditation, you must have sufficient material and technical resources and understand a variety of regulations. It will take at least 4-6 months to launch such a service station. During this time, you need to obtain all documents and permission from the state (RSA), purchase and install equipment, employ technical personnel, including a certified specialist, create a system of documentation and data transfer.
Selecting a room
To open a multifunctional car service center, you will need an area of 800-1000 square meters. m. In addition to work, storage and administrative premises, it is useful to equip a place for a small cafe where clients can relax, buy drinks and snacks.
You need to choose a room based on the requirements of the SES:
- minimum distance to residential buildings, public buildings, reservoirs – 10-50 m;
- availability of all communication systems (water supply and sewerage, ventilation, heating, electricity, lighting);
- equip a locker room for staff, a shower and a toilet;
- when finishing the workspace, use oil- and gasoline-resistant materials;
- line the inspection hole and 2/3 of the wall (from the floor) with ceramic tiles or oil paint;
- lay the floor with tiles.
