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Car Customization & Modification Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Automotive Sector

Are you about starting a car modification company ? If YES, here is a complete sample car customization business plan template & feasibility report you can use for FREE .

A car customization and modification business could be a fun and profitable business for someone who is interested in the automobile industry. With the right location, top-notch services and good marketing, you can serve several customers that require the interior and exterior of their automobiles to be customized to fit into their style or the brand they represent.

Please note that starting a car customization and modification business also needs a significant investment capital, solid planning and concentration to detail in order to keep your business profitable. Below is a sample car customization and modification business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Car Customization & Modification Business Plan Template

1. industry overview.

In the united states of America and even all over the world, the car customization and modification line of business accommodates highly skilled auto mechanics who have what it takes to give their customers far beyond what they are expecting; it is indeed a highly creative industry.

Car customization and modification garages engage in customizing and modifying cars by altering some parts or the whole car to improve its performance, often they alter or replace the engine and transmission and also they work on the body and sound system.

A customized car may be a personal “styling” statement, making the car look unlike any car delivered from the factory. A car customization and modification engineer may adopt the visual and performance characteristics of some relevant modification styles, and combine these as requested by the client.

The car customization and modification business is indeed a growing and profitable business. Statistics has it that household customers account for the largest share of car customization and modification revenue at approximately 76 percent.

Car customization and modification household customers are broadly defined as consumers that have a driver’s license, own a car, and are older than 16 years of age. This demographic is further segmented by income brackets, with households in the highest division representing the greatest demand for car customization and modification services.

Business customers contribute 22% of industry revenue. Revenue from this segment is largely derived from celebrity managers. Slower economic activity during the recession led to fewer businesses using vehicles to conduct shows, however a resumption of economic growth since 2010, has seen this segment strengthen.

Government customers comprise approximately 2% of the car customization and modification revenue. This segment includes federal, state, and local government organizations.

The car customization and modification line of business will continue to experience growth in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al. As a matter of fact, there are no companies with a leading market share in the industry.

Statistics has it that in the United States of America alone, there are about 61,332 licensed and registered car customization and modification businesses responsible for employing about 194,594 employees and the industry rakes in a whooping sum of $9bn annually with an annual growth rate projected at 2.7 percent.

Over and above, car customization and modification businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.

2. Executive Summary

Jolly Bosco® Car Customization & Modification Garage, LLC is a registered car customization and modification company that will be located in Fort Lauderdale, Florida – United States of America and we plan to also cover other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Miami Beach, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We chose to operate in these cities because we know that our car customization and modification services will be in high demand due to the growing number of automobile owners in these cities. Jolly Bosco® Car Customization & Modification Garage, LLC is located in a full-service automobile garage.

We will offer standard car customization and modification services that produce a pristine level of detail; it involves cleaning and restoring the surface of the car’s finish, chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a vehicle.

We are well trained and equipped to service the market segments that require car customization and modification services for their automobiles.

Although our intention of starting a Jolly Bosco® Car Customization & Modification Garage, LLC is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.

We will offer both in-station and off station services. Our customers will have the option of choosing from our different packages – we have the plans to serve both individual clients (households) and corporate clients (celebrities), which is why we designed various packages.

At Jolly Bosco® Car Customization & Modification Garage, LLC we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own car customization and modification business; we are in the industry to make a positive mark.

We are quite optimistic that our values and quality service offering will help us drive our car customization and modification business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We will be dedicated to establishing good business relationship with our clients while giving them value for their money and reasons for them to hire our services over and over again.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in the car customization and modification line of business.

Our excellent customer service will position us to always welcome repeated customers and handle massive deals from both branding agencies and managers of celebrities.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Jolly Bosco® Car Customization & Modification Garage, LLC is owned and managed by Jolly Bosco and his immediate family members. He is a notable figure in the automobile industry in Florida. Aside from this new car customization and modification business, the family owns an automobile dealership business and also auto repair workshop in Florida.

3. Our Products and Services

Jolly Bosco® Car Customization & Modification Garage, LLC is a standard and well – equipped car customization and modification company that offers a wide range of services that revolves around interior and exterior of cars. We intend giving our customers every reason to always hire our services which is why we have customized our services.

4. Our Mission and Vision Statement

• Our Vision is to become the number one car customization and modification company in the whole of Florida with active presence in major cities in the United States of America and Canada.
• Our mission as a car customization and modification company is to develop a highly successful, profitable, all – round car customization and modification business which provides quality services in our community and to become the standard for an ideal car customization and modification business not only in the State of Florida but also throughout the United States of America.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our car customization and modification company on the right business foundation.

As a matter of fact, we are set to build a car customization and modification business that will be a standard for the car customization and modification line of business in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.

We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on autopilot. The success of our car customization and modification business will be anchored on the team not on any individual.

With the wide range of our service offerings, we are expected to employ more than is required to run a conventional car customization and modification business. Jolly Bosco® Car Customization & Modification Garage, LLC will employ professionals and skilled people to occupy the following position;

• Manager (Owner)

Accountant/Cashier

Marketing and Sales Executive

Client Service Executive

• Car Customization and Modification Mechanic

5. Job Roles and Responsibilities

Manager (Owner):

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals and payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities in the organization
• Prepares budget and reports for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Regularly hold meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily activities of organization

Car Customization and Modification Mechanics (6):

• Handles car customization, modification and restoration
• Responsible for giving quotation on the cost and materials needed to customize and modify a car
• Handles any other duty as assigned by the manager
• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents Jolly Bosco® Car Customization & Modification Garage, LLC in strategic meetings
• Helps increase sales and growth for Jolly Bosco® Car Customization & Modification Garage, LLC.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Jolly Bosco® Car Customization & Modification Garage, LLC.
• Serves as internal auditor for Jolly Bosco® Car Customization & Modification Garage, LLC
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via email and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Car customization and modification business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard car customization and modification business with variety of services which is why we have decided to subject our business idea to SWOT Analysis.

Ordinarily we can successfully run a normal car customization and modification business without the stress of writing a business plan, but because of the nature of the kind of car customization and modification business we want to establish, we don’t have any option other than to follow due process.

We hired the services of Mr. Levi Kastrup, a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Jolly Bosco® Car Customization & Modification Garage, LLC;

Jolly Bosco® Car Customization & Modification Garage, LLC is centrally located in a densely populated industrial and residential estate in Fort Lauderdale, Florida; our location is in fact one of our major strengths.

We have state of the art equipment and tools and we are also one of the very few car customization and modification companies in the whole of Fort Lauderdale – Florida that offers a wide range of services for both Japanese and American cars.

Another strength that counts for us is the power of our team; our workforce and management. We have a team of experts in the car customization and modification line of business, a team of hardworking, highly creative and dedicated individuals.

Jolly Bosco® Car Customization & Modification Garage, LLC is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are aware that it will take time for us to build trust with our clients.

• Opportunities:

We are centrally located in one of the busiest areas in Fort Lauderdale, Florida and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the car customization and modification line of business.

The truth is that there are no standard and well – equipped car customization and modification garage within the area where ours is going to be located; the closest car customization and modification company to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.

Some of the threats that are likely going to confront Jolly Bosco® Car Customization & Modification Garage, LLC are unfavorable government policies , seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

The market for car customization and modification services is driven by the purchase of cars and the increase in consumer spending – in essence, as the general economy of a country grows, more people will buy cars and more people will patronize the services of car customization and modification businesses especially if their driving habits encourage them to do so.

In the recent past, many cars were modified by adding extra carburetors, high compression heads, and dual exhaust. Engine swaps were often done, the object of which was to put the most powerful engine in the lightest possible frame and body combination.

Car customization and modification businesses respond to the increase in household spending and also increase in the volume of cars in a particular area or city. The trend of the market can be predicted without stress.

The trend in the car customization and modification line of business is that most companies in a bid to survive the recent global economic meltdown included additional services to their core service offerings. It is much easier for car customization and modification companies to increase their revenues by diversifying as against increasing the scope of their market.

8. Our Target Market

Before choosing a location for our car customization and modification business, we conducted a feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically, those who will benefit from our service offerings are car owners, branding agencies and celebrities.

Our Competitive Advantage

Car customization and modification business is a highly creative industry. We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Fort Lauderdale – Florida. Our competitive edge is that we are a well – equipped car customization and modification business that has loads of complimentary business offerings that can easily assist us in attracting car owners within the radius of our garage.

We can confidently say that the location of our car customization and modification garage will definitely count as a positive for us amongst any competitor that might start a car customization and modification business in same location where ours is located.

For the time being, Jolly Bosco® Car Customization & Modification Garage, LLC has no real competitors that can match the quality of service we offer and our business offerings et al. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jolly Bosco® Car Customization & Modification Garage, LLC is established with the aim of maximizing profits in the car customization and modification line of business and we are going to go all the way out to ensure that we do all it takes to attract clients on a regular basis.

Jolly Bosco® Car Customization & Modification Garage, LLC will generate income by offering the following services: car customization, modification, restoration, and finishing. We are also open to generate income from other related services as long as it falls within the scope of the industry we are operating in.

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individual clients who would need the services of car customization and modification services.

We are well positioned to take on the available market in Fort Lauderdale – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from our first six months of operation and grow our car customization and modification business and our clientele base.

We have been able to critically examine the car customization and modification market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fort Lauderdale – Florida.

Below is the sales projection for Jolly Bosco® Car Customization & Modification Garage, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;

• First Year: $350,000
• Second Year: $950,000
• Third Year: $750,000

N.B : This projection is done based on what is obtainable in the car customization and modification line of business and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy for Jolly Bosco® Car Customization & Modification Garage, LLC is going to be driven basically by unique finishing, excellent customer service and quality service delivery. We will ensure that we build a loyal customer base.

We want to drive sales via the output of our jobs and via referrals from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like car customization and modification services.

Jolly Bosco® Car Customization & Modification Garage, LLC is a car customization and modification business that is strategically located and we are going to maximize the opportunities that is available which is why we spent more to locate the business in a location that will be visible to our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Jolly Bosco® Car Customization & Modification Garage, LLC.

Our goal is to grow Jolly Bosco® Car Customization & Modification Garage, LLC to become the leading car customization and modification company in Fort Lauderdale – Florida which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the car customization and modification industry.

Jolly Bosco® Car Customization & Modification Garage, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our car customization and modification business by sending introductory letters alongside our brochure to corporate organizations, branding companies, households and key stake holders in Fort Lauderdale – Florida
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like bars, night clubs, libraries, and local coffee shops et al
• Placing a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our customized services
• Advertise our car customization and modification company in relevant auto magazines, newspapers, TV and radio stations
• Attend relevant expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Encourage the use of Word of mouth marketing from loyal and satisfied students
• Join local chambers of commerce and industry to market our services

11. Publicity and Advertising Strategy

Jolly Bosco® Car Customization & Modification Garage, LLC is set to create a standard for car customization and modification businesses in Fort Lauderdale – Florida and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our business.

Good enough there is no hard and fast rule on how to advertise or promote a car customization and modification business. The challenge is that most car customization and modification companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our car customization and modification business. Here are the platforms we intend leveraging on to promote and advertise Jolly Bosco® Car Customization & Modification Garage, LLC;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our car customization and modification business in relevant magazines, local newspaper, local TV and local radio stations
• Promote our business online via our official website
• List our business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards on strategic locations in and around Fort Lauderdale – Florida
• Direct coupon mailing approach
• Engage in roadshows from time to time in target communities
• Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the car customization and modification line of business, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Fort Lauderdale – Florida.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.

• Payment Options

The payment policy adopted by Jolly Bosco® Car Customization & Modification Garage, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jolly Bosco® Car Customization & Modification Garage, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.

13. Startup Expenditure (Budget)

We have been able to pull together cash that will be enough for us to successfully launch a standard car customization and modification company in Fort Lauderdale – Florida US. These are the key areas where we will spend our startup capital on;

• The Total Fee for Registering the Business in Fort Lauderdale – Florida – $750
• Legal expenses for obtaining licenses and permits – $1,500
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• Cost for hiring Business Consultant – $2,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing standard warehouse facility- $100,000
• Cost for facility remodeling – $10,000
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for startup inventory – $15,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost for car modification equipment – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• Cost for the purchase of utility truck – $15,000
• The cost for our grand opening party – $1,500
• Miscellaneous: $10,000

We would need an estimate of three hundred and fifty thousand US dollars ( $350,000 ) to successfully launch our car customization and modification business in Fort Lauderdale – Florida US. Please note that this amount includes the salaries of all our staff members within 3 months of operations.

Generating Startup Capital for Jolly Bosco® Car Customization & Modification Garage, LLC

Jolly Bosco® Car Customization & Modification Garage, LLC is a business that will be owned and managed by Jolly Bosco and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Jolly Bosco® Car Customization & Modification Garage, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer nothing short of excellent and unique car customization and modification services at pocket friendly rates.

At Jolly Bosco® Car Customization & Modification Garage, LLC, we will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed tool box and equipment, electronic appliances, office appliances and bar accessories: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress

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How to Start a Custom Car Shop

This business is needed because of the large demand for vehicle customization. Since all jobs are customized or fabricated on-site, the complexity of each job varies with the customer and request. The market for this business consists mostly of automotive enthusiasts.

Learn how to start your own Custom Car Shop and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a custom car shop by following these 10 steps:

• Plan your Custom Car Shop
• Form your Custom Car Shop into a Legal Entity
• Register your Custom Car Shop for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Custom Car Shop
• Get the Necessary Permits & Licenses for your Custom Car Shop
• Get Custom Car Shop Insurance
• Define your Custom Car Shop Brand
• Create your Custom Car Shop Website
• Set up your Business Phone System

We have put together this simple guide to starting your custom car shop. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Custom Car Shop Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your custom car shop?

Business name generator, what are the costs involved in opening a custom car shop.

Costs for starting a custom car shop vary and generally depend on location. However, basic costs include:

• Air compressor - range from $100 used to $2,000 new
• Refrigerated evaporating system - $1,500 to $3,500
• Jitter bugs, dual-action sanders - $200
• Sanding blocks - $0.50 to $1 each
• Masks and paint suits - $250
• Cabinet (for solvents, paints, and cleaners) - $80 to $2,500
• HVLP guns of different sizes - $500 to $1,000 each
• Lift - $1,500 to $3,000 each (you will need between 3 and 5 of these)
• Air tools (like impact, air nozzle, etc) - $60 to $200 each
• Tools to stock boxes - $150 for basic 50 to 100-piece mechanic’s tool set; $40,000 for a 1,390-piece comprehensive set
• Parts washer - $100 to $200
• Diagnostic machine - $3,000 to $4,000
• Rebuilding counters - $400
• Woodworking tools - $200 for a basic set
• Fiberglass tools - $100 for a basic set
• Electrical tools for stereo and complete body wiring - $150 to $300

These are basic costs. Total costs may be higher, depending on the specific needs of your business.

What are the ongoing expenses for a custom car shop?

Ongoing expenses after initial overhead include insurance, rent, and labor costs.

• Rent - $1,500 to $15,000 per month, depending on location
• Insurance - $4,000 per year
• Labor - $20,000 to $45,000 per year, per employee
• Supplies - Vary based on job

Who is the target market?

Custom vehicles appeal to the automotive enthusiast crowd, which is a subset of the general population. Most jobs are sold retail to customers. Some shops, however, do work with corporation or governments, offering fleet work for these organizations.

How does a custom car shop make money?

This business depends on consumers coming into the shop, requesting custom work on their vehicle. The shop is paid a fee for this service. Generally, the fees are variable and depend on the job being performed. Some fees are flat or fixed-rate, while others are variable and billed by the hour.

Customers pay the shop and the shop pays the mechanic for the work performed.

Custom car shops charge customers market labor rates of at least $100 per hour or a flat rate for specific services. Clients typically pay for parts upfront and labor when the job is completed.

How much profit can a custom car shop make?

Shop owners typically make an average income of between $50,000 and $100,000 per year. The shop itself may bring in several hundred thousand or a million dollars in revenue.

How can you make your business more profitable?

Custom car shops can make more money by branching out and offering basic maintenance. In today’s economy, the market for customization is smaller than it was just 10 years ago. However, costs for customization have risen. This means work may bring in good revenue, but jobs may be sparse. Filling in with routine maintenance can help boost revenue.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your custom car shop is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a custom car shop. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

Custom car businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, and service level expectations. Here is a resource explaining the necessity of a “pre-build contract.”

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your custom car business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Labor safety requirements

It is important to comply with all Occupational Safety and Health Administration requirements:

Many of the regulations for custom car shops are general. Employers must take steps to create a safe working environment and report employee injuries.

Certificate of Occupancy

A custom car shop is generally run out of a warehouse. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a custom car shop.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your custom car shop will be in compliance and able to obtain a CO.

Car Modifications

Certain car modifications may be unlawful, depending on the regulations in each state. Here is a resource addressing the legality of certain modifications by state.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Custom Car Shop needs and how much it will cost you by reading our guide Business Insurance for Custom Car Shop.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a custom car shop

This type of business is heavily dependent on referrals. Most custom shops cater to automotive enthusiasts in a local community. Flyers and local ads may help but, ultimately, good service and quality work will help spread the word.

How to keep customers coming back

The most successful shops specialize in a market. For example, your shop might specialize in custom audio installations. You may not be able to do all types of audio installations when you first start out, but you could build out this specialty.

Other specialties include:

• Custom interiors
• Custom alarms

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Custom car shops appeal to entrepreneurs who are automotive enthusiasts and love engineering and designing. As a custom car shop owner, you need to be willing to work long hours, manage a team of technicians, and love working with your hands. You also need to have a passion for the automotive enthusiast community, which tends to have its own unique culture apart from the general population.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a custom car shop?

If you have a team of mechanics, you also need to manage your crew. If your mechanics are on a flat rate flag system, you must set up jobs for them throughout the day.

What are some skills and experiences that will help you build a successful custom car shop?

ASE certifications are great to have for a business like this because it shows professionalism. However, you’ll also need extensive experience and training in the specific types of customizations your shop will perform.

Opening a custom car shop requires familiarity with building and rebuilding, repairing vehicles, and experience with customizing various makes and models. This experience is best developed working for an existing successful custom car shop. Customization of automobiles is also driven by trends. So, you need to keep your finger on the pulse of the market and follow the current trends.

It’s also important to pay attention to regulations, since modifications must comply with local, state, and federal law. Some customizations, like window tints, may be restricted or illegal and exhaust pipes need to comply with EPA regulations.

What is the growth potential for a custom car shop?

It is difficult to run a custom car shop out of a small location. Usually, a large warehouse (40’ x 80’-100’) with at least 8 service bays is required. This is because at least one bay will be needed for a paint booth, while two more are needed at prepping and staging areas for the mechanics to prepare a vehicle for paint (if you offer these services).

The remaining bays are for non-body work and maintenance work.

However, some custom shops do specialize in certain kinds of customizations (e.g. custom stereo installation). These shops can be run out of a large garage.

Custom car shops can expand to service more customers, even opening multiple locations should demand exceed the capabilities of the first shop.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a custom car shop?

Getting started in this business is expensive. A few ways mechanics get around this is to start working in someone else’s shop, leasing space. You could also lease a smaller building and specialize in one or two different areas of custom work. Grow as finances allow.

How and when to build a team

While some shop owners are “one man shops,” this is a difficult business to do alone. Consider hiring a crew immediately. At minimum, you will want one mechanic to take over day-to-day service so you can run the shop and perform all managerial duties.

Useful Links

Industry opportunities.

• Auto Care Association
• Franchise opportunity with Tint World, a custom car shop

Real World Examples

• West Coast Customs, a custom car shop featured on its eponymous TV show and MTV’s Pimp My Ride
• Platinum Motorsport, which notoriously caters to celebrities in Hollywood

Further Reading

• How-to guide: starting a custom car shop

Have a Question? Leave a Comment!

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 There are a few chip tuning tools on the market that new tuners can choose. The  type of chip tuning tool you choose will depend on the type of vehicles you plan to remap. Some ECU remapping tools are better with some cars while other ECU remapping tools are better with other vehicles.  If you don’t have specific vehicles in mind, our recommendation would either be the Kess and Ktag from Alientech or the CMD from Flashtech. Both these companies offer a wide range of tuneable vehicles and excellent support. 

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Starting a Tuner Shop

• 25,777 views

Cars are fervor. A love for car tuning up is a hard-hitting business that could be started with adequate knowledge of a car's craftsmanship. The industry is spirited and very complex; therefore, much groundwork must be done.

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You may follow these trouble-free requisites to aid your dream tuning-up business in becoming a reality. Get your wheels on, big boys.

Business for the big boys is the likes of car tuner shops. Indeed, this is a challenging and rough industry where starting small and satisfactory preparation and planning are necessary. Car business nowadays is very competitive; therefore, one should be clever and strategic in starting up.

How to Open a Tuner Shop?

Primarily, in starting a tuner shop, you unquestionably will require a manufacturer backing up to carry on through the vast competition in the car market. Indeed, the market is a system wherein some are predators while others are prey. Be careful not to fall prey to these big car companies. It is a fact that outsized tuning companies acquire the latest released models before their accessibility to the common public. In that manner, when the car is removed, the car tuners are now holding for the products available or in production. In this case, you have no means of acquiring this collaboration from an expert car producer; subsequently, you ought to keep lingering in anticipation of the car’s accessibility to the community and for you to purchase one. Additionally, perform much research to outline what unerringly you consider the vehicle requires.

Similar Articles

• Startup Kit for Mechanic Shop Business
• Step by Step Guide for Starting a Custom Car Shop

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• Starting a Racing Retail Store If you have a passion for car racing, why don’t you turn your hobby into a business? Own your own racing retail store and we can show you how to profit from it. We have step-by-step guide to get your business off the ground.
• John Varghese   said on July 10, 2013 Good Morning, I am from india .I need your valuable technical guidance. I wish to start a Car Tuning Business in india. Probably i prefer computerized diagnostic system. Your valuable guidance & support in this matter is greatly appreciated. Thanking you, John Varghese
• FARID KHAN   said on December 15, 2014 I'm also frm india and want to open a tuning shop.
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How to Start a Profitable Custom Car Shop Business [11 Steps]

Business steps:, 1. perform market analysis., are custom car shop businesses profitable, 2. draft a custom car shop business plan..

Creating a business plan is essential for the success of your custom car shop. It will serve as a roadmap for your business, outlining your goals, strategies, and financial projections. Here are some key elements to include in your custom car shop business plan:

How does a custom car shop business make money?

3. develop a custom car shop brand., how to come up with a name for your custom car shop business, 4. formalize your business registration., resources to help get you started:, 5. acquire necessary licenses and permits for custom car shop., what licenses and permits are needed to run a custom car shop business, 6. open a business bank account and secure funding as needed., 7. set pricing for custom car shop services., what does it cost to start a custom car shop business, 8. acquire custom car shop equipment and supplies., list of software, tools and supplies needed to start a custom car shop business:, 9. obtain business insurance for custom car shop, if required., 10. begin marketing your custom car shop services., 11. expand your custom car shop business..

How to Write an Auto Repair Shop Business Plan + Free PDF

Elon Glucklich

8 min. read

Updated February 16, 2024

Looking for a free, downloadable auto repair shop business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.

You don’t need to find a sample business plan that exactly matches your business. Whether you’re starting an independent garage, a specialty shop for imports, or an auto body shop, the basics of the plan will be the same.

More than 280 million registered vehicles were on the road across the United States at the end of 2022. With a vast majority of them being used vehicles, the need for skilled auto repair technicians is higher than ever.

In this article, we’ll cover the basic elements of how to write an auto repair shop business plan, from your marketing plan to your financials. We also provide a sample auto repair shop business plan PDF for you to download and incorporate into your own plan.

What should you include in an auto repair shop business plan?

Are you writing a business plan for your auto shop because you’re seeking a loan ? Are you looking to clarify your path to creating a profitable, long-lasting business? 

Independent auto repair shops account for three-quarters of all used car repairs in the U.S., so there are numerous examples of successful business models to guide your business. 

But no two auto shops are exactly the same, so your plan will differ from others based on who you’ve identified as your target market , and what products and services you’re offering them.

Many business plans include the following sections:

• Executive summary
• Company overview and funding needs
• Market and competitive analysis
• Products and services
• Operational plan
• Business structure
• Marketing and customer acquisition strategies
• Financial planning and projections

One thing that makes an auto repair business plan different from many other service-based business plans is the sheer number of different products and services you might offer. 

For instance, besides providing auto repair services, you might also sell parts, accessories, and car care products. Each might require a different promotional strategy to maximize the number of sales you make.

You may also want to think about how you’re pricing your services and if you have specific staffing requirements or training programs.

Here’s an example of an auto repair shop business plan outline.

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The 8 elements of an effective auto repair shop business plan

1. executive summary.

The executive summary is a high-level overview of your business plan. 

It shouldn’t be more than two pages, and even though it goes at the beginning of the plan, you should write it last. That’s because the executive summary is basically a condensed version of your business plan.

Your executive summary should include a mission statement that describes the purpose of your business and what sets it apart from competitors. Maybe you can guarantee a quicker service time than other shops in your area, or you offer a unique mix of services.

Your business plan helps you focus on these key factors that will help your auto repair shop thrive, and the executive summary makes your plan more credible to anyone reading your plan.

2. Company overview and funding needs

The company overview is a short summary of your auto repair shop, including its legal structure , location, and history. 

If you aren’t seeking a loan or investment for your business, you can likely skip this section. 

If you are writing the business plan for funding, clearly state: 

• How much you need
• What you will use it for
• How it will benefit the business

For instance, you may need funds to renovate your building, buy equipment, or place advertisements.

3. Marketing plan and competitive analysis

The marketing plan focuses on analyzing the auto repair shop market in your area, both in terms of potential customers’ needs, and how other shops in the area are (or aren’t) meeting those needs.

Researching your market involves researching local demand for auto repair services. For instance, a shop in a colder climate might have customers with different car issues than a shop in a warmer area. A shop in a lower-income market might get more customers with older vehicle models than one in a high-income market.

The market analysis should also examine your competitors , noting their strengths and weaknesses and how you can differentiate your shop.

4. Products and services

This section outlines the range of services your auto repair shop will offer. You can list them as bullet points, though you should also take some time to explain why you are offering them. 

Start with your most profitable services, and work your way down. Also, separate any unique services products that differentiate your auto repair shop from competitors (you’ll need to do market research to know which services will set you apart).

A list of products and services could include:

• Engine repairs
• Transmission work
• Suspension and steering
• Brake repair
• General maintenance
• Auto part sales

You can also include specialty services like:

• Classic car restoration
• Hybrid and electric vehicle maintenance 

5. Operational Plan

The operations section details the everyday functioning of the auto repair shop. It includes the shop’s operational hours, workflow management, and customer service policies.

The idea with this section is to cover the processes that you’ll deploy in your business to make sure your shop is operating efficiently, so you can maximize the number of customers you’ll serve and revenue you’ll bring in. 

Be sure to touch on how you’ll manage inventory , work with parts suppliers, and ensure equipment maintenance protocols are being followed. Also, outline safety procedures and environmental compliance measures you’ll implement.

6. Business structure and management

This section describes the organizational structure and management of the auto repair shop. If you skipped the Company Summary and Funding Needs section, include information about your legal structure here. 

Many owners choose to incorporate their business as Limited Liability Companies (LLCs) . This option strikes a balance between protecting the business from legal liabilities while providing flexibility in how they operate their business.

The management team section provides information about the auto repair shop’s key personnel. This includes the shop owner, managers, technicians and front office support. 

Briefly explain their roles, responsibilities, qualifications, and experience. 

7. Marketing and customer acquisition strategies

This section is where you’ll outline your strategies for attracting and retaining customers. You might want to offer loyalty programs for repeat customers, discounts for customers coming to your shop for the first time, or add-on services like a free car wash.

Cover the various marketing channels you’ll use, like local advertising or online marketing. Maybe you want to create a strong website and leverage social media. Or maybe you’ll rely more on partnerships with local businesses and participation in community events. 

Focus on how you plan to build a strong reputation to attract and retain customers.

8. Financial planning and projections

Your financial plan should give detailed financial projections, including sales , expenses , and profitability . If you’re running an existing business, you can start with your previous year’s numbers. If you’re just starting out, put in your best guess.

Set a goal for yourself — maybe you want to grow revenue by 5 percent. Create a 12-month cash flow statement, income statement, and balance sheet that rises by 5 percent from the beginning of the year to the end.

Then, run your business. 

As you compare your actuals to the forecast over time, you’ll see where you need to make strategic adjustments in order to reach your goal or if you need to revise your target. 

It’s totally fine to adjust your forecast over time — forecasts are just guesses, after all.

Building a successful auto repair shop business plan: Key considerations

Understanding your target customer’s needs is crucial to writing an auto repair shop business plan that you can use effectively. 

To ensure your business plan is the foundation of a growing operation, ask yourself whether you’re taking these considerations into account.

1. Service range

Vehicle owners have varied needs. 

You should offer a broad spectrum of services that meet as many of the needs in your market as you can realistically provide, from basic maintenance to specialized repairs. Catering to more customer segments than your competitors is a good way to set your shop apart.

2. Pricing strategy

Competitive pricing is crucial. You want to attract customers with reasonable rates, while ensuring profitability by bringing in more revenue than expenses. Researching your competitors’ prices should help inform your pricing decisions.

3. Technician expertise

Skilled technicians are vital to your reputation and your bottom line. Make sure your technicians undergo regular training so that they’re up to date with the latest automotive trends and technologies. 

Take some time to research technician wages in your area, to ensure you’re paying a competitive wage that will attract qualified employees.

4. Online presence

A strong digital footprint is essential. 

Even if you plan to rely on traditional advertising and word-of-mouth sales, a website that is search engine optimized can help you generate good online reviews and attract customers in your area who are searching for auto repair services online. 

If this isn’t an area of strength for you, consider hiring a website designer .

5. Shop environment

It may not make or break your business, but providing a welcoming environment at your shop signals to customers that you’re running a credible organization—a factor that might affect whether or not they return. 

Focus on cleanliness, organization, and professional service.

Download your free auto repair shop sample business plan PDF

Download your free auto repair shop sample business plan PDF now, or explore Bplans’ collection of over 550 sample business plans for other options.

There are numerous reasons auto repair shop owners can benefit from writing a business plan — you’ll almost certainly need to write one if you need a bank loan.

But even if you’re not seeking funding, writing a business plan increases your chances for sustained growth .

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• What to include in your business plan
• Elements of a business plan
• Key sections
• Example and template

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The 7-Step Business Plan to Grow Your Auto Repair Shop

Free profit and valuation ebook.

Discover and implement essential shop management strategies for building a profitable, high-valuation business.

• By Kyle Zhao
• | February 23, 2022
• | Business Advice , Tips

Does your auto repair shop’s growth rely merely on hope, or do you strategize how to drive your business forward?

Try our Free Business Valuation Calculator

While many auto repair shops and most businesses operate on hope—whether it’s hoping new target customers and repeat customers show up to spend a lot of money—it’s not an effective plan, says Al Wheeler, Chief Executive Officer of ShopPros , a management and training company that offers a complete business system for independent auto repair shops.

Wheeler, who has 35 years of experience in the automotive industry, understands the challenges that every auto repair shop owner faces. In a recent webinar , Wheeler shared why shops should consider creating a detailed financial plan for growing and sustaining their auto repair business.

“As business owners, we typically spend the majority of our time working in the business and not on the business,” Wheeler says. “I think it’s especially prevalent in our industry because you’re wearing so many hats throughout the day, and our days seem to be consumed by firefighting much of the time. As a result, the business trends really tend to drive us, rather than us driving business.”

The sample auto repair shop business plan discussed in this article outlines a strategy for:

• Discovering the potential in your auto repair shop
• Analyzing the current status of your auto repair shop
• Setting repair shop goals
• Training and planning
• Implementing change
• Monitoring and measuring

Why do you need a business plan for your auto repair shop?

Think of a business plan as a GPS for your auto repair shop. Not only will a business model provide details and direct you from point A to point B, but it also optimizes your route and helps you avoid potential pitfalls along the way.

According to research by Entrepreneurial Dynamics , using business plans helps you become:

• Twice as likely to obtain a bank loan
• Twice as likely to create investment value 
• 49% more likely to grow

While goal setting remains an important aspect of this equation, it’s not the same as business plans, which analyze current performance and define specific actions to reach purposeful results. “Keep in mind that setting goals, while important in business, does not constitute a business plan,” Wheeler says.

“Business planning really lays the foundation for continuous improvement,” Wheeler says. “I like to call it a success cycle for your business. What fundamental steps do you need to take to create an environment of continuous improvement within the business?”

Creating a cycle of success is essential for your auto repair shop, and where a clearly defined business plan will play a big role.

• The success cycle starts with a practical understanding of current performance against your desired or optimized outcome. Complete this analysis in thoughtful detail.
• The planning process then kicks in, helping you define specific actions to take advantage of outcomes. 
• As results of this success cycle start to roll in, employees across your auto repair shop will begin to believe more and more in the business’s potential. This positive energy keeps the success cycle in motion, resulting in even more growth.

“It’s about establishing (this) success cycle for your business. It builds on belief, establishes potential, and leverages the specific actions you choose to deliver those purposeful results,” Wheeler says.

Can your shop survive without a plan?

According to the U.S. Bureau of Labor Statistics (BLS) , approximately 20% of new businesses fail during the first two years of starting operations, 45% during the first five years, and 65% during the first ten years. Only 25% of businesses make it to 15 years or more. Why’s that?

From this industry overview, it’s clear a major reason for failure is their lack of a business plan.  This is where an auto repair business plan will help. With the right high-level overview and strategy, determination of how much funding you need, and enough flexibility, your auto repair shop will have a better chance of success. The future becomes much clearer once a business plan is in place to get the ball rolling.

Creating an auto repair business plan

Now that you know why this type of plan is important, it’s time to put pen to paper. Here are some pointers to help your auto repair shop get started:

Step 1: Discover potential at your auto shop

To discover your auto repair shop’s potential, it’s key to establish a ceiling and baseline so you can measure performance.

In the industry, an auto repair shop’s primary revenue producer is billed hours. It’s critical to determine your production capacity because that helps determine the ceiling of your financial plan, Wheeler says. Production hours will drive business potential in terms of revenue and gross projected profit, which ultimately your employees generate. Incorporate this business idea into your auto repair shop’s own business plan and create a more efficient system to generate money.

One of the common elements includes examining relevant benchmarks of other shops of a similar type and size, and their quality work performance.

Step 2: Analyze your auto shop’s current status

Determining the current status of your auto repair shop helps you understand how your shop compares to its potential. This includes analyzing store averages in daily, weekly, and monthly production, revenue, and gross projected profit.

Not only do you want to scrutinize business performance, but also individual performance. This executive summary includes auto mechanics’ average production, service advisor average gross profit, and service advisor billable hours and revenue. Keep these factors in mind when forming the business plan for your auto repair shop.

“This is a good way to effectively establish the baseline in which we’re going to judge performance improvement in those key areas and within our key employees,” Wheeler says.

[Download Now] Free Profit and Valuation eBook

Step 3: set goals for your auto shop team.

Team involvement remains necessary to achieve individual and store-level goals. “This is where it’s critical to have team involvement and remember the SMART acronym—specific, measurable, achievable, relevant, and timestamp goals,” Wheeler says.

To remain on track with your automotive repair shop business plan, set specific monthly, weekly, and daily goals, both at individual and store levels. It’s important to involve your team in establishing these repair services goals and possess effective ways to measure them.

Step 4: Train and plan for auto shop growth

Training and business planning become critical components of facilitating change. Investing in your team as part of your own plan not only shows you care but allows them to grow in knowledge and skill.

Planning becomes part of the long-term business strategy. While many shops set business plans and goals around needing more car repair services completed, which drives sales, shops should first build the underlying fundamentals for a great customer experience

“We don’t need more cars for the sake of cars,” Wheeler says. “We need more cars to develop long-term loyal customers, and if we don’t have a conversion strategy for those guests, more cars are not going to sustain our growth.”

Step 5: Implement change to grow your auto repair business

A business plan won’t become effective unless it’s put into practice. To do this, good communication and accountability remain key.

“I’ve seen companies develop these great missions and vision statements, only for them to become artwork on the wall,” Wheeler says. “They really don’t have any substance behind them, and they aren’t lived out each day.”

Step 6: Monitor and measure your auto shop’s performance

To measure success, your auto repair shop needs to set relative benchmarks so they can obtain broader insights into the business and performance. This information will help you determine next steps on how to attract customers and generate new business. An excellent way to do this within your automotive repair shop business plan is by investing in automotive repair business software, such as AutoLeap .

While it’s important to monitor and measure repair services goals in your new plan, it’s also important to communicate with your team in daily or weekly meetings.

“What we’re doing in this business plan is essentially establishing the playbook in which you’re going to operate your auto repair business,” Wheeler says. “It’s going to drive the customer engagement system within your shop, so your business plan really should strive to eliminate randomness in your auto repair business. Nothing should happen by accident, everything should be intentional around achieving your objectives.”

Step 7: Adapting to the changing auto repair industry

Your auto repair shop must keep up with the changing dynamics of the automotive repair industry, technology, and customers’ behavior. Within the plan you put together, your auto repair shop  must prepare for the electrification of vehicles and equip itself to deal with the latest technology, such as Advanced Driver Assistance Systems (ADAS) . How will your business plan account for these emerging vehicle technologies and the potential customers they draw?

“I understand changing an operating system is painful, but in many cases, it’s going to be necessary,” Wheeler says.

An auto repair shop should consider:

• What could you be doing based on your existing staffing by location?
• A performance dashboard that can provide relevant data at a glance.
• A plan built and owned by the business with discrete actions.
• Standards/goals set for every tech and advisor to measure performance and reward/recognize high achievers.
• Benchmarking against every competing auto repair shop gives you insight into your relative performance and identifies areas to improve.
• Effective technology and systems that ensure great customer experiences.

Download Free Profit and Valuation eBook Now!

Your auto repair shop business plan, much like other goals, is only effective and only as good as it’s acted upon, Wheeler points out.

“It’s kind of like Newton’s first law that we all learned in school—objects in motion will remain in motion until acted upon by an external force,” Wheeler says. “In other words, your business will continue on the path that it’s on unless you engage the energy necessary to change that trajectory…If you think you can do better, then I think one of the energy components that you can use, or should consider, is a comprehensive business plan.”

Now that you’ve learned the steps to prepare an auto repair shop business plan and explored several benefits, it’s time to execute on this clear vision and  grow your business .

Customers with older vehicles are more likely to need auto repair services. Why is this? For one, older vehicles tend to break down more. Warning signs like check engine lights will appear more frequently, requiring a visit to your shop.

To write a business plan for your auto shop, you will need to: 

• Analyze your shop’s current status 
• Set SMART goals for your shop team
• Include plans for training and growth 
• Prioritize communication and accountability  
• Establish and measure performance benchmarks
• Account for evolving industry trends

Auto repair shops’ profitability depends on many factors. But the revenue potential is significant. Nearly one third of surveyed shops in AutoLeap’s 2022 State of the Auto Repair Industry Report generated $1 million or more in 2021 revenue. 

Successful promotion helps maintenance shops earn new business. Targeted email marketing and aggressive word-of-mouth outreach are two widely used strategies. Referral programs, organic SEO and active social media presences also help attract new customers. 

You can promote your car repair business by: 

• Launching social media accounts and posting regularly 
• Targeting local search terms with paid marketing 
• Sending creative promotional emails to your target customers
• Creating a referral program
• Building up your organic keyword rankings

Auto Repair Shop Management Software

AutoLeap is a powerful all-in-one auto repair shop software that helps to keep complete track of your business – from scheduling appointments to managing technicians and generating invoices.

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $150,000 for the development of an automotive shop with a focus on performance enhancing services while showcasing the expected financials and operations over the next three years. Performance Automotive, Inc. (“the Company”) is a New York based corporation that will provide performance enhancing automotive services and part sales to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

Performance Automotive, Inc. will be actively engaged in the business of providing automobile tuning and performance enhancing services to the general public. Through the shop, the business will be able to install and enhance a stock vehicle’s performance and/or superficial features. From time to time, the business will also acquire stock vehicles with the intent on increasing the car’s value by adding several performance and profile enhancing features. This, coupled with the automotive tuning/upgrade services offered by the Company, will provide the business with highly predictable revenue streams on a year round basis. The third section of the business plan will further describe the services offered by Performance Automotive, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

It is the mission of Performance Automotive, Inc. to provide outstanding after-market upgrades and tuning services to the general public. Mr. Doe is committed to developing Performance Automotive, Inc. into a premier after-market tuning shop that is recognized by the car tuning enthusiast community.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail automotive repair and tuning industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals (especially within the 18 to 34 year old demographic) within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Performance Automotive, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Performance Automotive requires $150,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Performance Automotive, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Performance Automotive, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the automotive tuning services and products offered by Performance Automotive, Inc.

3.1 Automotive Tuning Services

The modification of stock automobiles has become extremely popular over the last ten years with the influx of after-market performance parts. Companies that specialize in after-market performance tune-ups generate significantly higher gross margins on labor and products sold as unlike automotive repair, automotive tuning is a non-essential service, and those that are interested in automotive tuning are willing to pay a premium for excellent service. Within the Company’s market, the after-marketing tuning and upgrade of stock vehicles is extremely popular, and Management sees a significant opportunity to develop a profitable business in this region.

3.2 Sales of Tuned Vehicles

From time to time, the Company intends to acquire stock vehicles with the intent to customized, tune, and upgrade the car for resale into the open market. This will generate a significant portion of the Company’s revenues, and Management anticipates that each tuned vehicle will generate profits in excess of $5,000 per vehicle sold.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the retail automotive industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.

4.2 Industry Analysis

About 130,000 companies in the US are involved primarily in automotive services with combined annual revenue of $65 billion. The industry is highly fragmented: 10,000 companies have annual revenue over $1 million, 150 have revenue over $10 million. Approximately 10% of this market is dedicated to the after-market performance and tuning of stock vehicles. The profitability of individual companies depends on primarily on volume, because many costs are fixed. However, the gross margins of performance and tuning businesses are significantly higher than automotive repair shops. This differentiation has to do with the fact that customers are willing to pay a premium for a quality performance enhancement job versus a simple repair job to get a car back to operating condition. Historically, performance and automotive enhancement businesses earn 50% more profit per dollar of revenue than their repair shop counterparts.

4.3 Customer Profile

The Company expects that the average customer of Performance Automotive, Inc. will be a male automotive enthusiast that has a specific interest in middle market sedans and sports cars that are tuned and customized according to their specifications. Management further expects that the average customer will be between the ages of 21 and 35, and will have an annual household income in excess of $45,000 per year. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Performance Automotive, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.

5.1 Marketing Objectives

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.

5.2 Marketing Strategies

Management intends to use a number of marketing strategies to promote sales of its automotive services and after-market parts. Primarily, the business intends to develop its visibility through its retail location, which will feature eye-catching signage on the exterior of the automotive shop. Management feels that having a high visibility retail location will provide a significant amount of its early revenues. Performance Automotive, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as automotive tuning shops, now the Internet to conduct their preliminary searches. Mr. Doe will register the Company with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will showcase the Company’s portfolio of customized vehicles, vehicles for sale, relevant contact information, product lines carried, and information regarding how to get to Performance Automotive, Inc.’s location. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the specialized automotive services that the Company is selling.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• Performance Automotive, Inc. will have an annual revenue growth rate of 10% per year.

• The Owner will acquire $150,000 of debt funds to develop the business.

• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The business’s revenues are only moderately sensitive to changes in the general economy. During times of economic recession, Performance Automotive will advertise the fact that it can perform normal automotive repair services to the general public, which will ensure the continued profitability of the business on a monthly basis.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

Car Dealership Business Plan Template

Written by Dave Lavinsky

Car Dealership Business Plan

You’ve come to the right place to create your Car Dealership business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Car Dealerships.

Below is a template to help you create each section of your Car Dealership business plan.

Executive Summary

Business overview.

Wilson Toyota, located in Albuquerque, New Mexico, is a brand-new Toyota dealership that sells, leases, and services new and used Toyota vehicles. Our dealership will feature all the models that Toyota makes, from budget models to hybrids. In addition to our large inventory, we also offer in-house financing and service and repairs for all Toyota owners. With our competitive prices and world-class customer service, we plan to be the #1 Toyota dealer in the Albuquerque area in the next five years.

Wilson Toyota is led by Dylan Wilson who has extensive sales experience, including selling used cars for a previous employer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

Product Offering

Wilson Toyota will maintain an inventory of new and used Toyota vehicles. We will sell all Toyota models, including hybrid and electric vehicles. Some of the models we plan to sell include:

Wilson Toyota will also have a service center to help Toyota owners with routine maintenance, repairs, recalls, and part replacements. Additionally, Wilson Toyota will offer financing and insurance options for customers with all credit scores. Customers will find financing options at Wilson Toyota that they will not find at other area dealerships.

Customer Focus

Wilson Toyota will primarily serve the residents in the Albuquerque area. The city is home to thousands of families, professionals, and businesses in need of vehicles. We will offer budget vehicles to those who only need a basic model as well as luxury vehicles to those who have the disposable income to purchase something high-end.

Management Team

Wilson Toyota is led by Dylan Wilson who has been in sales for 20 years. Dylan Wilson has sold products in numerous industries, with his most recent experience being at a competitor dealership. Dylan Wilson is a car aficionado. He knows everything about the most popular models and how to find the perfect vehicle for every customer. His experience and knowledge make him the perfect candidate to run a Toyota franchise.

While Dylan Wilson has never run a dealership himself, he has worked in the industry for years. As such Dylan Wilson has an in-depth knowledge of the dealerships industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

Wilson Toyota will be able to achieve success by offering the following competitive advantages:

• Location: Wilson Toyota’s location is near the center of town, giving us access to thousands of residents, local office workers, and passersby shopping in the city.
• Great service at an affordable price: The complete array of auto services offered by Wilson Toyota is comprehensive, and Wilson Toyota will offer these services at a much more affordable price.
• Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, Dylan Wilson knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Financial Highlights

Wilson Toyota is currently seeking $10 million to launch. Specifically, these funds will be used as follows:

• Lot design/build: $100,000
• Franchise fee: $400,000
• Inventory: $9 million
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $100,000
• Working capital: $100,000

Company Overview

Who is wilson toyota, wilson toyota’s history.

Dylan Wilson incorporated Wilson Toyota as an S-Corporation in February 2023. The business is currently being run out of Dylan’s private office, but once the build-out on Wilson Toyota’s commercial location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found commercial space and signed Letter of Intent to purchase it
• Developed the company’s name, logo, and website
• Hired an architect to design the showroom
• Determined equipment and inventory requirements
• Begun recruiting key employees

Wilson Toyota’s Services

Industry analysis.

Wilson Toyota competes against other new and used car dealerships, as well as online-only auto dealers and private consumer sales. The major trend in auto sales is that more people are purchasing vehicles online rather than through a salesperson. To meet this challenge, Wilson Toyota will offer flexible online purchasing through our website.

Even though the industry is changing, it is still growing and remaining profitable. According to Mordor Intelligence, the industry is expected to grow at a CAGR of 4% over the next five years. Even with the increasing demand for public transportation and cleaner forms of transportation, vehicles are still an essential purchase for most Americans.

According to a report by the National Automobile Dealers Association, the car dealership industry is a fragmented one, as the majority of operators are single-location businesses and employ fewer than 20 people. The market is estimated to grow to over $1 trillion in five years. Since there are no truly dominant competitors, barriers to entry are not as high as in many other industries, and a start-up can expect to have success in this growing market, Wilson Toyota is well-positioned for success. There is plenty of room in the industry particularly for conveniently located dealerships that cater to specific demographic trends and demands. In this industry, size does not necessarily mean an advantage, which bodes well for Wilson Toyota.

Customer Analysis

Demographic profile of target market.

Wilson Toyota will serve the residents of Albuquerque, New Mexico and the immediately surrounding areas as well as those who work in the area.

The area we serve is populated mostly by middle-class Millennials; as a result, they have the means to pay for higher-quality vehicles. Further, many are looking to transition to hybrid or electric vehicles, and middle-class earners are the primary demographic for these types of vehicles.

Customer Segmentation

Wilson Toyota will primarily target the following customer profiles:

• Professionals

Competitive Analysis

Direct and indirect competitors.

Wilson Toyota will face competition from other companies with similar business profiles. A description of each competitor company is below.

Gibson Toyota

Gibson Toyota’s goal is to give its customers the best possible experience online and at its physical store. The professional and fun-loving sales team is committed to its customers’ complete satisfaction. Gibson Toyota prides itself on building relationships with its customers throughout all phases of the automotive journey whether it’s sales, service, or parts. Gibson Toyota provides auto sales and services for both new Toyotas and used cars.

While we expect that Gibson Toyota will continue to thrive. But since it is located in the next city, we expect more and more customers will frequent Wilson Toyota based on proximity and competitive prices we offer.

Johnson Auto

Johnson Auto is an independent used car dealership specializing in certified pre-owned vehicles. The team believes that the car-buying process should be as hassle-free as possible. The team takes pride in serving its customers to the fullest. The service center is one of the best in the area, and the team strives to get its customers back on the road as soon as possible. Johnson Auto maintains a convenient online parts inventory, and if a customer can’t find what they want there, the team will help them find what they are looking for. At Johnson Auto, the team is willing to answer each and every question a customer might have during the car buying process.

Wilson Toyota has several advantages over Johnson Auto, in that it specializes in selling and servicing one make of vehicle. Wilson Toyota will provide these specialized services at an affordable price point.

Foster’s Chrysler, Jeep, Dodge, Ram

Foster’s Chrysler, Jeep, Dodge, and Ram offers both new and used inventory, as well as providing service for these makes. The dealership also retails auto parts and accessories. This location also participates in Toyota Rent a Car, in which new Toyotas are rented by the day. Camrys rent for $48.50 per day and Corollas rent for $37.80 per day.

Foster’s Chrysler, Jeep, Dodge, Ram offers some services which are unique to the area, and thus we expect it will continue to draw a large clientele. However, because many of its services are geared toward a rental clientele, we expect to draw buyers who seek the same level of support.

Competitive Advantage

Wilson Toyota will be able to offer the following advantages over its competition:

• Relationships: Having lived in the community for 25 years, Dylan Wilson knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Wilson Toyota to build brand awareness and an initial customer base.

Marketing Plan

Brand & value proposition.

Wilson Toyota will offer a unique value proposition to its clientele:

• Convenient location
• Large inventory of new and used vehicles
• Highly trained specialists
• Significant personal attention
• Moderate price point
• Comfortable, customer-focused environment

Promotions Strategy

The promotions strategy for Wilson Toyota is as follows:

Commute Advertising

We will drive attention toward Wilson Toyota by leasing a billboard alongside multiple highways. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.

Website & SEO Marketing

The company will utilize the website and SEO to attract new customers. The website will be easy to navigate and provide all the information and pictures needed to show our dealership and the vehicles we sell. The SEO strategy will also be managed to ensure that anyone searching for new Toyota vehicles will see our company listed at the top of the Bing or Google search engines.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about vehicles and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its brand in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Wilson Toyota’s pricing will be competitive so customers feel they receive great value when shopping for a new car. The customer can expect to receive quality services and personalized attention when patronizing the dealership.

Operations Plan

The following will be the operations plan for Wilson Toyota.

Operation Functions:

• Dylan Wilson will be the Owner of the company. He will oversee all staff and manage the general operations of the company. He will also partake in customer service and sales until he has employed a full staff of sales professionals. Dylan has spent the past year recruiting the following staff:
• Janie Wilson will serve as the dealership’s Administrative Assistant. She will assist Dylan with all the operational, executive, and administrative aspects of the business. She will also manage the phones until Dylan hires a receptionist.
• Joe Smith will be the Services Manager. He will oversee all the operations of the services department.
• Maria Kenway will be the Sales Manager. She will oversee all the sales staff and help out with customer service, managing sales, and the appraisal process for used vehicles.
• Dylan will hire a full staff of service technicians and sales professionals to help with the service, sales, and customer services functions.

Milestones:

Wilson Toyota will have the following milestones completed in the next six months.

• 3/202X Finalize lease agreement
• 4/202X Design and build out Wilson Toyota
• 5/202X Hire and train initial staff
• 6/202X Kickoff of promotional campaign
• 7/202X Launch Wilson Toyota
• 8/202X Reach break-even

Financial Plan

Key revenue & costs.

Wilson Toyota’s revenues will come primarily from the sale of vehicles and secondarily from the sales of parts/accessories and auto services.

Labor expenses are a major cost driver for dealerships with service departments. Service technicians are salaried; therefore, attractive compensation packages are necessary to maintain qualified staff. Furthermore, large commissions help the dealership keep the best salespeople on staff. Other major cost drivers for the company include the lease, franchise fees, inventory and parts, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average annual franchise fees: $100,000
• Annual lease costs: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Car Dealership Business Plan FAQs

What is a car dealership business plan.

A car dealership business plan is a plan to start and/or grow your car dealership business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Car Dealership business plan using our Car Dealership Business Plan Template here .

What are the Main Types of Car Dealership Businesses?

There are a number of different kinds of car dealership businesses , some examples include: New Car Dealers, Used Car Dealership, and Online Car Dealership.

How Do You Get Funding for Your Car Dealership Business Plan?

Car Dealership businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

This is true for a used car dealership business plan as well.

What are the Steps To Start a Car Dealership Business?

Starting a car dealership business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Car Dealership Business Plan - The first step in starting a business is to create a detailed car dealership business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your car dealership business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your car dealership business is in compliance with local laws.

3. Register Your Car Dealership Business - Once you have chosen a legal structure, the next step is to register your car dealership business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your car dealership business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Car Dealership Equipment & Supplies - In order to start your car dealership business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your car dealership business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful car dealership business:

• How to Start a Car Dealership Business

Where Can I Get a Car Dealership Business Plan PDF?

You can download our free car dealership business plan template PDF here . This is a sample car dealership business plan template you can use in PDF format.

Other Helpful Business Plan Articles

Car Wash Business Plan Template Franchise Business Plan Template Car Detailing Business Plan Template

• Get Started

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How to Start a Business in PA: Turning Your Passion into Profit

By Homebase Team

You’ve done your due diligence and have done all of the research to develop a viable business idea. You’ve got a great concept and name to start your own business in Philly, but now what do you do? Here are a few simple steps to help navigate Pennsylvania’s unique business regulations and turn your business idea into a successful business.

Get your team in sync with our easy-to-use, all-in-one employee app.

Branding your business

Since you already have your business niche and name picked out, your next step is to make sure that the name of your desired business is actually available and not already in use in the state of Pennsylvania. Head to the Pennsylvania Department of State’s business name database and simply search for your business name.

While you are at it, run a search on the US Patent and Trademark Office’s website to avoid any potential legal issues later down the road. Once you’ve done this research and have a desired business name in mind, you can start your business venture.

Decide on your business structure

Before you can tackle the operational needs of your business, you need to decide on your business structure. Your choice of business entity will impact several things from your personal liability, to how you file taxes, to even how much paperwork you are willing to handle.

Importantly, it will also affect the protection of your personal assets from business liabilities. Pennsylvania offers several business entities, each with its unique advantages and challenges.

Sole Proprietorship

• Owned and run by one person
• Pros: Simple to set up, direct control, profits taxed once
• Cons: Unlimited personal liability, hard to raise funds

LLC (Limited Liability Company)

• Hybrid of corporation and partnership/sole proprietorship
• Pros: Limited liability, flexibility, pass-through taxation
• Cons: More paperwork, potential self-employment tax

Corporation

• Separate legal entity owned by shareholders
• Pros: Limited liability, can raise capital easily, longevity
• Cons: Double taxation, extensive record-keeping

Partnership

• Two or more individuals share ownership
• Pros: Easy to form, combined resources/skills, profits taxed once
• Cons: Partners share liability, potential disputes

S Corporation

• Special corporation type with IRS tax election
• Pros: Avoid double taxation, limited liability
• Cons: Stock ownership restrictions, stringent processes

Create a business plan

Now that you have the structure for your business nailed down, it’s time to come up with an actual business plan. A business plan details everything about your business. You’ll need to be detailed and provide information on what it does, the services it provides, to the goals you want your company to achieve in the long run.

A good business plan helps you and your future team clearly define your company’s objectives and goals. Having a formal business plan will help keep you organized as you navigate this new world of owning a business.

You can use a business plan template to get you started.

Register your Pennsylvania business

When starting your business in Pennsylvania , there are a few different registrations you need to complete. First, apply for a federal employer identification number (EIN), also known as a business tax ID number. This number is how you’ll identify your business with the state.

You will also need to register your business entity structure with the Pennsylvania Department of State UNLESS your business type is a sole proprietorship. If your business is a sole proprietorship operating under your legal (first and last) name, you are not required to register with the Pennsylvania Department of State.

The name of your new business is important when registering with the state. If the name you want to use for your business is different from your legal registered name, you’ll need to register a “fictitious name” or “doing business as” (DBA) name. Registering a DBA or fictitious name is required in most states if you plan to use anything other than your legally registered business name for operations, sales, marketing, etc. 

Tax and federal employer identification number accounts

Depending on the type of business you are running, there may be different business taxes that you’re responsible for.

If you are selling goods, you will need to obtain a business sales tax license. Registering for your state tax and employer accounts will enable you to operate legally in the state of Pennsylvania. Registering for both can be done online.

This guide to small business taxes can help you better understand your tax responsibilities as a small business, but consulting a tax professional is always a good idea.

Local taxes, zoning requirements, licenses, or permit

Starting a business in Pennsylvania may require additional permits and licenses beyond basic business registration. While Pennsylvania does not issue a general business license at the state level, specific industries or professions may require state-level licenses.

The state’s official website offers a tool to determine specific requirements based on your business location and type. Head to the website and add in your business address to find local regulations, zoning laws, and relevant government contacts.

The site is a great resource. You’ll find everything you need including information for business name registration, tax requirements, and general inquiries. For professional services like healthcare or legal work, you’ll need to get the necessary professional licenses before commencing operations. These licenses ensure public safety by verifying expertise and credentials.

Remember to thoroughly research all applicable regulations to ensure full compliance when launching your Pennsylvania business. You may even get a business attorney to help you sort through all the details.

Open a business bank account

Picking the right dedicated business bank account takes careful consideration as to what your company’s requirements are. You need to figure out which features and services will best serve your business on the daily. Things like monthly fees, transaction limits, and minimum balance are all things to consider when looking for a business bank account.

Additionally, getting a dedicated business credit card can be helpful. This separate business card should be used exclusively for business-related expenses, maintaining a clear distinction from personal finances.

Responsible use and timely payments on a business credit card can contribute to building your company’s credit profile. Keeping your business account and personal accounts separate will also make things easier come tax season.

Acquire business insurance

The type of business insurance you need depends on what your business does. Professional liability insurance is crucial for protecting your business from potential risks and claims related to your specific operations and industry.

Certain types of insurance are required for all small businesses. While workers’ compensation and unemployment insurance ARE required in the state of Pennsylvania, disability insurance is NOT, although you may decide to opt into it.

S eek out an insurance agent to help you narrow down all of the options out there. They can help you figure out which policy makes sense for your specific situation.

Fund your business

Every business needs funds to get off the ground. Small business owners have several funding options available, including loans, crowdfunding, and venture capital.

If you can’t self-fund your business, there are several other options available. You could take out a loan from the US Small Business Administration, or a commercial bank, launch a crowdfunding campaign, or secure funding from an angel investor or venture capitalist.

However you go about it, the key is finding the right financial tool that fits your business like a glove. It could be just the thing you need to take your business to the next level. So don’t be afraid to explore your options and see what works best for you and your business.

A successful business starts with you

Starting your own business can be extremely scary. You can follow this comprehensive guide to make the process easier and less stressful so you can focus on growing your business into a successful one. 

Get started for free today .

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Car Hauling Business Plan Template

Written by Dave Lavinsky

Car Hauling Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their car hauling companies.

If you’re unfamiliar with creating a car hauling business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a car hauling business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Car Hauling Business Plan?

A business plan provides a snapshot of your car hauling business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Car Hauling Business

If you’re looking to start a car hauling business or grow your existing car hauling company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your car hauling business to improve your chances of success. Your car hauling business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Car Hauling Businesses

With regards to funding, the main sources of funding for a car hauling business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for car hauling companies.

Finish Your Business Plan Today!

How to write a business plan for a car hauling business.

If you want to start a car hauling business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your car hauling business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of car hauling business you are running and the status. For example, are you a startup, do you have a car hauling business that you would like to grow, or are you operating car hauling businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the car hauling industry.
• Discuss the type of car hauling business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of car hauling business you are operating.

For example, you might specialize in one of the following types of car hauling businesses:

• Long-distance car hauling : this type of car hauling company typically specializes in cross-continental and interstate trucking transportation of automobiles.
• Local car hauling: this type of car hauling company typically involves trucking transportation of autos from rail yards to their final destination in the immediate vicinity.
• Ship transport: this type of car hauling company includes coastal, Great Lakes, and deep-sea transportation of automobiles.

In addition to explaining the type of car hauling business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of cars delivered, the number of transportation contracts signed, reaching X number of clients served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the car hauling industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the car hauling industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your car hauling business plan:

• How big is the car hauling industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your car hauling business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your car hauling business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: auto dealerships, car rental companies, wholesalers, and end users.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of car hauling business you operate. Clearly, individuals would respond to different marketing promotions than car dealerships, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Car Hauling Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other car hauling businesses.

Indirect competitors are other options that customers have that aren’t directly competing with your product or service. This includes companies with in-house transportation services, or individuals who haul their own vehicles. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of car hauling business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide rapid delivery options?
• Will you offer services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car hauling business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of car hauling company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide long-distance hauling, or local hauling?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your car hauling company. Document where your company is situated and mention how the site will impact your success. For example, is your car hauling business located near a busy port or railroad? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your car hauling marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your car hauling business, including answering calls, negotiating contracts, coordinating deliveries, determining routes, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to deliver your Xth load of cars, or when you hope to reach $X in revenue. It could also be when you expect to expand your car hauling business to a new city or region.  

Management Team

To demonstrate your car hauling business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing car hauling businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a car hauling business or successfully running a transportation company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you use enclosed trailers to haul one or two high-value cars at a time, or will you use an open car carrier to haul nine cars at a time? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your car hauling business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a car hauling business:

• Cost of equipment, tires, and fuel
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a map of the routes you frequent.  

Writing a business plan for your car hauling business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the car hauling industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful car hauling business.  

Car Hauling Business Plan Template FAQs

What is the easiest way to complete my car hauling business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your car hauling business plan.

How Do You Start a Car Hauling Business?

Starting a car hauling business is easy with these 14 steps:

• Choose the Name for Your Car Hauling Business
• Create Your Car Hauling Business Plan
• Choose the Legal Structure for Your Car Hauling Business
• Secure Startup Funding for Car Hauling Business (If Needed)
• Secure a Location for Your Business
• Register Your Car Hauling Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Car Hauling Business
• Buy or Lease the Right Car Hauling Business Equipment
• Develop Your Car Hauling Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Car Hauling Business
• Open for Business

Learn more about how to start your own hauling business .

Don’t you wish there was a faster, easier way to finish your Car Hauling business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

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EV charging is so bleak in the US that 46% of owners are considering going back to gas-powered cars

• Electric-vehicle charging is so bad it's driving people back to fossil fuels.
• Lack of charging infrastructure is already a barrier for many would-be EV buyers.
• The last thing the auto industry needs is people ditching their EVs.

Issues with charging has nearly half of electric-vehicle owners in the US considering going back to fossil fuels — the latest bad sign for the EV transition .

A recent consumer study conducted by McKinsey found that 46% of US EV owners surveyed were likely to switch back to a gas-powered vehicle, compared to a global average of 29% of EV owners who said they would likely switch back to an internal-combustion engine.

Respondents said the top reason for ditching their EVs was a lack of charging infrastructure . Other charging issues high on the list included a lack of charging at home and the impact of long-distance driving.

Related stories

Range anxiety and access to charging infrastructure have long been considered big barriers to electric-vehicle adoption , but the revelation that these same issues may drive current battery-powered car owners back into gas-powered cars is a new blow for the already rocky EV transition.

While there are plenty of shoppers interested in an electric vehicle, the options on sale are often too big, too expensive, or not practical enough to replace a gas-powered car.

Car companies are already scrambling to adjust to a sudden change in the electric-vehicle market to draw more new customers. The slowdown in EV sales growth has rocked everyone from Ford to Tesla , denting sales and forcing executives to rethink their long-term plans for electric vehicles.

While the industry has made great strides in electric-vehicle range and battery charging times, huge infrastructure holes make certain areas nearly impossible to navigate without a gas-powered engine.

McKinsey's study found this issue to be particularly acute in the US, which had the second-highest rate of respondents who said they were considering ditching their EV. (Australia was in first place, with 49% of respondents saying they were likely to switch back.)

America's high placement shouldn't come as too much of a surprise. Charging infrastructure in the US has long been a hot-potato issue , which has held back efforts to build more chargers.

Though a push from the automotive industry to fund charging infrastructure has led to a boom in public charging stations in the last two years, these have largely been money-losing ventures.

The Biden administration has set aside $7.5 billion for charging infrastructure and has said it would add 500,000 EV charging stations by 2030. But that effort has played out slowly so far, with only a handful of stations going live since the funding was approved two years ago.

Addressing charging infrastructure is already high on the industry's list of priorities when it comes to removing barriers to adoption, but the fact that it might also drive existing EV owners away only amplifies the issue.

Watch: How did Tesla's bulletproof Cybertruck become so expensive and so delayed?

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• 4 April, 2024

Introduction to Car Tuning Business

In the world of car enthusiasts, car tuning is a popular and exciting industry that allows individuals to unleash the full potential of their vehicles. This section will provide an introduction to the car tuning business, exploring what car tuning entails and why starting a car tuning business can be a rewarding venture.

What is Car Tuning?

Car tuning refers to the modification or customization of a vehicle’s performance, appearance, or both, to suit the preferences and needs of the owner. It involves making changes to various components such as the engine, suspension, exhaust system, body kits, and interior features. Car tuning allows enthusiasts to enhance the power, handling, and aesthetics of their vehicles, creating a unique and personalized driving experience ( HODOOR Performance ).

Car tuning can take various forms, including engine tuning to increase horsepower and torque, suspension modifications for improved handling, exterior styling enhancements to customize the appearance, and interior upgrades for a more luxurious or personalized feel. It requires expertise, technical knowledge, and an understanding of automotive engineering to ensure that modifications are executed safely and effectively.

Why Start a Car Tuning Business?

Starting a car tuning business can be an attractive venture for individuals passionate about cars and customization. It offers the opportunity to turn a hobby or passion into a profitable business. With the growing demand for customized vehicles, car tuning businesses can cater to a niche market and provide specialized services to customers who seek personalized modifications for their vehicles.

The car tuning industry is constantly evolving, with new trends and technologies emerging regularly. This presents opportunities for innovation and staying ahead of the curve. By keeping up with the latest trends and offering unique services, a car tuning business can differentiate itself in the market.

Moreover, starting a car tuning business allows entrepreneurs to work closely with car enthusiasts, building relationships and satisfying their desires for unique and high-performance vehicles. The satisfaction of seeing a customer’s vision come to life and witnessing the joy they experience from driving their customized car can be incredibly rewarding.

However, it is important to note that starting a car tuning business requires careful planning, market analysis, and adherence to legal and regulatory requirements. It is crucial to develop a comprehensive business plan, considering factors such as target audience, location, facilities, and competition. Additionally, staying up-to-date with industry trends and investing in the right tools and equipment is essential for success.

In the following sections, we will explore the car tuning industry in more detail, including industry trends, considerations for starting a car tuning business, essential services offered, emerging technologies, challenges, and opportunities. All these factors will help aspiring entrepreneurs navigate the car tuning business landscape and make informed decisions for a successful venture.

Understanding the Car Tuning Industry

To navigate the dynamic world of car tuning, it is essential to have a comprehensive understanding of the industry’s trends and the impact of government regulations.

Car Tuning Industry Trends

The car tuning industry is constantly evolving, driven by advancements in technology and changing consumer preferences. Staying up-to-date with the latest trends allows car tuning businesses to offer cutting-edge services and capture the interest of car enthusiasts.

Some notable trends in the car tuning industry include:

Carbon Fiber Components : The increased use of carbon fiber in body kits, wings, and interior components is a significant trend in the car tuning industry. Carbon fiber offers weight reduction and a sleek, high-end appearance ( source ).

Forged Wheels : Lightweight forged wheels with intricate designs and bold color combinations are trending in the car tuning industry. These wheels not only enhance performance but also provide a unique, eye-catching aesthetic ( source ).

Aggressive Widebody Kits : Aggressive widebody kits are growing in popularity. These kits aim to create a bold and distinctive look while improving aerodynamics and handling ( source ).

Understanding and incorporating these trends into your car tuning business can help you attract customers and differentiate yourself in the market.

Impact of Government Regulations on Car Tuning

Government regulations have a significant impact on the car tuning industry. These regulations aim to ensure safety, emissions compliance, and adherence to certain standards. It is crucial for car tuning businesses to stay informed and compliant to operate legally and responsibly.

Government regulations can affect various aspects of car tuning, including:

Emissions Compliance : Government regulations often require vehicles to meet specific emissions standards. Car tuning modifications should not compromise a vehicle’s compliance with these standards. Understanding and adhering to emissions regulations is essential to avoid legal issues.

Safety Standards : Car tuning modifications should not compromise the safety of the vehicle or its occupants. It is important to ensure that any modifications comply with safety regulations and do not introduce hazards or compromise the structural integrity of the vehicle.

Warranty Considerations : Modifying a vehicle’s components may void manufacturer warranties. Car tuning businesses should inform customers about the potential impact on warranties and help them make informed decisions.

By staying aware of government regulations and ensuring compliance, car tuning businesses can operate within the legal framework and build trust with customers.

Understanding the trends and regulations shaping the car tuning industry is crucial for the success of any car tuning business. By staying informed, adapting to evolving trends, and complying with regulations, car tuning businesses can thrive in an ever-changing market. For more information on starting a car tuning business, refer to our car tuning business guide .

Key Considerations for Starting a Car Tuning Business

Before diving into the world of car tuning, it’s important to consider several key factors that can shape the success of your car tuning business. From market analysis and target audience identification to legal requirements and finding the right location and facilities, these considerations will set the foundation for your venture.

Market Analysis and Target Audience

Conducting a comprehensive market analysis is essential for understanding the car tuning industry and identifying your target audience. This analysis involves studying the current market trends, competitor landscape, customer preferences, and demand for car tuning services. By gaining insights into the market, you can tailor your business strategies to meet the specific needs of your target audience.

To gather data for your market analysis, you can utilize industry reports, online research, and engage with car enthusiasts through surveys or focus groups. This will help you identify the trends and preferences that are shaping the car tuning industry ( car tuning business guide ). Understanding your target audience’s motivations, interests, and pain points will enable you to develop effective marketing and branding strategies to attract and retain customers ( car tuning business opportunities ).

Legal and Regulatory Requirements

Complying with legal and regulatory requirements is crucial for starting and operating a car tuning business. Laws and regulations related to business registration, licenses, permits, and environmental standards may vary depending on your location. It’s important to research and understand the specific requirements applicable to your area.

Consulting with local regulatory agencies or seeking legal advice can help ensure that you are adhering to all necessary guidelines. Additionally, understanding intellectual property rights and avoiding copyright infringements when using branded products or designs is essential to protect your business.

For a comprehensive overview of legal and regulatory requirements, it is recommended to refer to our article on car tuning business requirements .

Location and Facilities

Choosing the right location and facilities for your car tuning business can greatly impact its success. Consider factors such as accessibility, visibility, and proximity to your target audience. A location with high traffic flow and easy parking can attract more customers and provide convenience for them. Additionally, having a space that allows for expansion as your business grows is important for long-term success.

The facilities needed for a car tuning business may include a workshop equipped with specialized tools and equipment, a waiting area for customers, and storage space for parts and inventory. Ensuring that your facilities meet safety and environmental standards is crucial to provide a secure and compliant working environment.

By carefully considering market analysis, legal requirements, and location and facilities, you can lay a strong foundation for your car tuning business. These key considerations will help you understand the market landscape, comply with regulations, and create an environment that fosters growth and customer satisfaction.

Essential Services in Car Tuning

When it comes to car tuning, there are several essential services that car enthusiasts seek to enhance the performance and aesthetics of their vehicles. These services cater to different aspects of the car, including the engine, suspension, exterior, and interior. Let’s explore these essential services in more detail.

Engine Tuning and Performance Upgrades

Engine tuning and performance upgrades are at the forefront of car tuning trends. Enthusiasts strive to maximize the power and efficiency of their engines through various modifications. These modifications can include:

• ECU (Engine Control Unit) remapping: Adjusting the engine’s electronic control unit to optimize performance parameters such as fuel delivery and ignition timing.
• Air intake and exhaust system upgrades: Enhancing the engine’s air intake and exhaust flow to increase horsepower and torque.
• Turbocharging or supercharging: Installing forced induction systems to boost the engine’s power output.
• Performance tuning components: Upgrading components such as fuel injectors, intercoolers, and camshafts to enhance overall engine performance.

By fine-tuning the engine, car enthusiasts can experience improved acceleration, responsiveness, and overall driving experience.

Suspension Modifications and Handling Enhancements

Suspension modifications play a crucial role in improving a vehicle’s handling, stability, and overall performance. Car enthusiasts seek to upgrade their suspension systems to achieve enhanced cornering abilities and a smoother ride. Some popular suspension modifications include:

• Lowering springs or coilovers: Lowering the vehicle’s center of gravity for improved handling and a more aggressive stance.
• Performance shocks and struts: Upgrading the suspension components to enhance stability and control during cornering and braking.
• Sway bars: Installing thicker sway bars to minimize body roll and improve stability during cornering maneuvers.

With these enhancements, car enthusiasts can enjoy sharper and more precise handling characteristics, making their driving experience more exhilarating.

Exterior Styling and Customization

Exterior styling and customization allow car enthusiasts to give their vehicles a unique and personalized look. These modifications can range from subtle changes to bold transformations. Some popular exterior styling options include:

• Body kits: Adding aftermarket body kits to enhance the vehicle’s aerodynamics and give it a more aggressive appearance.
• Custom wheels and tires: Upgrading to eye-catching wheels and tires that not only enhance aesthetics but also improve performance and grip.
• Paint and vinyl wraps: Applying custom paint jobs or vinyl wraps to change the vehicle’s color and add unique designs or patterns.

By customizing the exterior, car enthusiasts can create a vehicle that reflects their individual style and stands out from the crowd.

Interior Upgrades and Personalization

Interior upgrades are equally important for car enthusiasts looking to enhance both comfort and aesthetics. These modifications can include:

• High-quality sound systems: Upgrading the audio system with premium speakers, amplifiers, and subwoofers for a superior listening experience.
• Custom upholstery: Replacing stock seats and interior materials with high-quality, custom upholstery to enhance comfort and add a touch of luxury.
• LED lighting: Installing LED lights in headlights, taillights, and interior areas to create a unique and customizable lighting ambiance.

By upgrading the interior, car enthusiasts can transform their driving environment into a more enjoyable and personalized space.

These essential services in car tuning provide car enthusiasts with the ability to enhance both the performance and aesthetics of their vehicles. Whether it’s optimizing engine power, improving handling, customizing the exterior, or upgrading the interior, these services cater to the desires and preferences of car enthusiasts, allowing them to unleash the full potential of their cars.

Emerging Technologies and Trends in Car Tuning

As the car tuning industry continues to evolve, emerging technologies and trends are shaping the future of car tuning. These advancements not only enhance the performance and appearance of tuned cars but also introduce new possibilities for customization and optimization. Here are some of the exciting trends and technologies making waves in the car tuning industry:

Electric Vehicle Tuning

With the increasing prevalence of electric and hybrid vehicles, car tuners are adapting their practices to cater to these new technologies. As highlighted by HODOOR , the focus of car tuning is shifting from maximizing the performance of gasoline engines to optimizing factors such as battery life and motor efficiency. This transition necessitates a deep understanding of electric vehicle systems and a focus on fine-tuning parameters to achieve optimal performance and range.

Artificial Intelligence and Machine Learning in Car Tuning

Artificial intelligence (AI) and machine learning are revolutionizing the car tuning industry. Car tuning software can now analyze data from sensors and modify engine settings in real-time, leading to more precise tuning and improved performance. According to HODOOR , AI-powered tuning algorithms can optimize engine parameters based on various inputs, such as driving conditions and driver behavior. This level of optimization enhances both performance and fuel efficiency.

3D Printing for Customization

The advent of 3D printing technology has opened up new possibilities in car tuning. Car tuners can now leverage 3D printing to create custom parts and accessories tailored to specific vehicles. This breakthrough, as mentioned by HODOOR , allows for greater flexibility and creativity in design. Tuned cars can benefit from custom-made components that enhance performance and provide a more unique and personalized look.

Augmented Reality for Visualizing Modifications

Augmented reality (AR) is another technology making its way into the car tuning industry. AR enables car tuners to visualize modifications before making any physical changes to the vehicle. This technology, as highlighted by HODOOR , allows for virtual experimentation with different looks and configurations. Car tuners can use AR to precisely plan and execute modifications, ensuring the desired outcome without any guesswork.

These emerging technologies and trends are transforming the car tuning industry, offering new possibilities for performance enhancement, customization, and optimization. As the industry continues to evolve, car enthusiasts can look forward to even more exciting advancements that push the boundaries of what is possible in car tuning.

Challenges and Opportunities in the Car Tuning Business

The car tuning business presents both challenges and opportunities for entrepreneurs looking to enter this dynamic industry.

Competition and Differentiation

One of the primary challenges in the car tuning business is the presence of competition. With a growing number of car tuning businesses entering the market, it is crucial to differentiate your services to stand out from the crowd. This can be achieved by offering unique modifications, specialized services, or targeting a specific niche within the car enthusiast community.

To effectively differentiate your car tuning business, it’s important to conduct thorough market analysis and identify gaps or underserved segments. Understanding your target audience’s preferences and needs will allow you to tailor your offerings and provide a personalized experience. Additionally, focusing on exceptional customer service and building a strong reputation for quality workmanship can help you gain a competitive edge.

Marketing and Branding Strategies

Effectively marketing your car tuning business is essential to attract customers and increase brand visibility. Developing a comprehensive marketing strategy that utilizes both online and offline channels will help you reach your target audience and generate leads.

Digital marketing plays a crucial role in today’s business landscape. Creating a professional website that showcases your services, features customer testimonials, and provides contact information is essential. Utilizing search engine optimization (SEO) techniques and targeted online advertising can help improve your online visibility and attract potential customers.

Social media platforms are also valuable marketing tools for engaging with car enthusiasts. By creating compelling content, sharing before-and-after transformation photos, and interacting with your audience, you can build a strong online presence and develop a loyal customer base.

In addition to digital marketing, traditional marketing methods like attending car shows, collaborating with local automotive businesses, and distributing flyers or brochures can help increase awareness of your car tuning services within your community.

Leveraging Technology for Business Operations

Advancements in technology present significant opportunities for car tuning businesses. By embracing technological innovations, you can streamline your operations, enhance customer experiences, and stay ahead of the competition.

Integrating software solutions for inventory management, scheduling, and customer relationship management (CRM) can help optimize your business processes and improve efficiency. These tools allow you to track and manage orders, schedule appointments, and maintain customer records, ensuring a smooth workflow and excellent service.

Furthermore, keeping up with emerging technologies in the automotive industry can help you offer cutting-edge tuning services. For example, electric vehicle tuning is an emerging trend that requires specialized knowledge and expertise. Staying informed about the latest developments, such as artificial intelligence (AI) and machine learning, 3D printing, and augmented reality, can position your business as a leader in the field.

By leveraging technology, you can enhance your car tuning business’s competitiveness, deliver exceptional customer experiences, and adapt to the evolving needs of the market.

Navigating the challenges and capitalizing on the opportunities in the car tuning business requires careful planning, strategic decision-making, and a commitment to delivering high-quality services. By differentiating your business, implementing effective marketing strategies, and embracing technology, you can position yourself for success in this exciting industry.

Future of the Car Tuning Industry

As the automotive industry continues to evolve, the car tuning industry must adapt to emerging trends to stay relevant. In this section, we will explore the future of the car tuning industry, focusing on the shift towards electric vehicles, the impact of autonomous vehicles, and the opportunities in the last-mile delivery market.

Shift Towards Electric Vehicles

The automotive industry is undergoing a significant transformation with the increasing popularity of electric vehicles (EVs). By 2027 , EV sales in Europe are projected to surpass those of other powertrains. A similar trend is expected to occur in China and the U.S. by 2032 . By 2040 , internal combustion engine vehicle sales are estimated to decline to less than 1% of global sales.

This shift towards electric vehicles presents both challenges and opportunities for the car tuning industry. As EVs become more prevalent, car tuners will need to specialize in electric vehicle tuning. This includes optimizing the performance of electric motors, battery systems, and other components unique to EVs. Car tuning businesses can also focus on developing specialized software and firmware modifications to enhance the performance and efficiency of electric vehicles.

Autonomous Vehicles and Car Tuning

Autonomous vehicles are another major technological advancement that will shape the future of the car tuning industry. The usage of autonomous vehicles is expanding in both consumer and commercial markets. By 2025 , it is projected that 63.6% of registered passenger cars worldwide will have partly assisted driving and steering capabilities.

As autonomous vehicles become more prevalent, car tuning businesses can explore opportunities in providing modifications and enhancements specifically tailored for autonomous driving. This may include optimizing the vehicle’s sensors, algorithms, and control systems to improve safety, performance, and overall driving experience. Car tuners can also focus on developing software and hardware solutions that integrate with autonomous vehicle technology.

Opportunities in the Last-Mile Delivery Market

The last-mile delivery market is experiencing rapid growth and transformation, driven by both traditional automotive manufacturers and new technology startups. Companies are expanding their fleets and utilizing electric and autonomous vehicles to meet the increasing demand for fast and reliable delivery services. The adoption of electric delivery vehicles is particularly promising, with companies like BrightDrop, a subsidiary of GM, forecasting $1 billion in revenue for 2023 .

This presents opportunities for the car tuning industry to cater to the specific needs of last-mile delivery vehicles. Car tuners can focus on developing performance upgrades and modifications that enhance the efficiency, range, and cargo capacity of electric delivery vehicles. Additionally, they can provide customization options that align with the branding and requirements of delivery companies.

The autonomous last-mile delivery market is also on the rise, with a projected worth of $3 billion by 2030 . As companies add autonomous vehicles to their delivery fleets, car tuners can explore opportunities in optimizing the autonomous driving capabilities of these vehicles, ensuring they are safe, reliable, and efficient for last-mile delivery operations.

The future of the car tuning industry lies in embracing these emerging trends and technologies. By staying at the forefront of electric vehicles, autonomous vehicles, and the last-mile delivery market, car tuning businesses can position themselves as key players in the evolving automotive landscape.

As the car tuning industry evolves, there are several emerging technologies and trends that are shaping the future of car tuning. These advancements are driven by the continuous innovation in the automotive industry. Let’s explore some of the exciting developments in car tuning.

With the increasing popularity of electric vehicles (EVs), the demand for electric vehicle tuning is also on the rise. EV tuning focuses on optimizing the performance of electric motors, battery systems, and power management to enhance acceleration, top speed, and overall driving experience. While traditional internal combustion engine tuning techniques may not directly apply to EVs, specialized tuning solutions are being developed to unlock the full potential of electric powertrains.

Artificial intelligence (AI) and machine learning technologies are revolutionizing the car tuning industry. These technologies enable the development of advanced tuning algorithms that can analyze vast amounts of data and optimize vehicle performance. AI-powered tuning systems can adapt and learn from driving patterns, road conditions, and other factors to deliver personalized tuning solutions for individual vehicles. This allows for more precise tuning adjustments and improved performance.

3D printing is making its mark in the car tuning industry by enabling customized parts and components. This technology allows tuners to design and produce unique and personalized exterior and interior modifications. From aerodynamic body kits to custom interior panels, 3D printing offers tuners the flexibility to create intricate and tailor-made designs. It also allows for rapid prototyping and efficient production of limited-edition tuning parts.

Augmented reality (AR) is transforming the way car enthusiasts visualize modifications before making any changes to their vehicles. AR applications can overlay virtual modifications onto a real car, allowing users to see how different modifications would look in real-time. This technology helps car tuners make more informed decisions about their desired modifications, reducing the risk of dissatisfaction or costly mistakes.

These emerging technologies and trends are shaping the future of the car tuning industry, providing new opportunities for car enthusiasts and tuning businesses alike. By staying informed and embracing these advancements, car tuners can leverage technology to enhance their services and deliver exceptional results.

It’s important for car tuning businesses to keep an eye on these trends and adapt their offerings accordingly. By incorporating these technologies into their operations, they can stay ahead of the competition and provide customers with innovative and cutting-edge tuning solutions.

To learn more about starting a car tuning business and the opportunities it presents, visit our car tuning business guide . Stay tuned for the future of the car tuning industry as it continues to evolve and transform in response to emerging technologies and market demands.

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NASCAR looks to ease disruptions during Chicago Street Race, but businesses have mixed feelings

Some small business owners said they plan to close during the two-day event but others are excited about the race and the boost in pedestrian traffic that could bring more sales..

Customers roam around Exile in Bookville in the Loop, which will be closed during NASCAR.

Pat Nabong/Sun-Times

Race cars will once again zoom through downtown for the NASCAR Chicago Street Race, a two-day event that kicks off Saturday. And Chicago will be in the spotlight as tens of thousands attend the race with many more watching it on TV.

But there are mixed emotions from businesses about the massive event that will dramatically disrupt traffic and normal life in the heart of the city. Since June, some streets have already closed as infrastructure goes up to transform Michigan Avenue and areas around Grant Park into a high-speed race course and festival .

This year, organizers have worked to apply lessons learned from last year’s debut in Chicago, which was NASCAR’s first street race in its 75-year history.

Roads are closed on East Ida B. Wells Drive near South Michigan Avenue ahead of the NASCAR Chicago Street Race, taking place Saturday and Sunday.

NASCAR and the city have trimmed course set-up and breakdown time to 19 days from last year’s 25 days, in an effort to minimize disruption to businesses and residents. Mufflers will again dampen noise on stock cars that can get up to speeds of 100 mph.

In addition to physical improvements, boosting the local economy is a big focus at this weekend’s event.

NASCAR is striving to “wrap as much Chicago into the event as possible,” Chicago Street Race President Julie Giese said.

For example, the company held a supplier summit earlier this year to encourage bids from diverse companies to provide event services such as security, printing, signage and more. It also expanded its free NASCAR Village at Butler Field in Grant Park, which will feature Chicago restaurants, retailers and partners. The village and its interactive NASCAR exhibitions and car simulators are public, in contrast to race tickets that range from $150 to $465.

The company is again offering an online Chicago Resource Guide in partnership with Canadian tech startup FanSaves, where businesses and attractions can sign up to be included in the guide and draw more customers before and during race weekend.

Giese said NASCAR aims to use the race “as a platform to showcase local restaurants, retailers and partners, and in doing so — help expand their exposure to a broader market.”

Last year, more than 47,000 “unique attendees” from 50 states and 15 countries attended the Chicago Street Race, according to an economic impact report commissioned by Choose Chicago with Temple University’s Sports Industry Research Center. The report said total attendance was 79,229, less than the projected 100,000. Heavy rain had dampened the race and Canadian wildfire smoke was also a problem.

The event generated $108.9 million in economic impact, below the estimate of $113 million . It also brought in more than $8.3 million in tax revenue for the city and drove nearly 30,000 hotel room bookings.

The report said media coverage of race cars whizzing past Chicago’s iconic cityscape was worth $23.6 million in “media value” for the city — the equivalent of more than three national Super Bowl ads.

Reviving downtown Chicago

The Chicago Loop Alliance is partnering with NASCAR to bring area businesses to NASCAR Village. It’s part of the alliance’s ongoing effort to revive downtown Chicago, which is still trying to recover from the COVID-19 pandemic .

Michael Edwards, CEO of the Chicago Loop Alliance, said Chicago wouldn’t have hosted NASCAR before the pandemic. “Storefronts were full, life was pretty good,” he said.

But post-pandemic, downtowns across the U.S., including in Chicago, are struggling to bring pedestrians and business back. Edwards attended a national conference of downtown groups last year and recalled that other delegates were very interested in bringing NASCAR to their cities to spur a revival.

NASCAR has been in touch with nearly 1,500 Chicago businesses to prepare them for the race — hosting one-on-one meetings, calls and webinars; giving out “Open for Business” signs to hang in windows; and distributing 78,000 brochures with race maps detailing street closures and other information.

Some establishments along the race course welcome the NASCAR Chicago Street Race.

The Gage, 24 S. Michigan Ave., is offering a special NASCAR menu featuring drinks such as the “Pit Stop Rum Punch Bowl” and “Racing Fuel Revolver.”

“Last year, we saw a significant increase in foot traffic, which translated into a boost in sales and a vibrant atmosphere in our restaurant,” a spokesperson for The Gage said. “We anticipate an even greater crowd this year.”

Jackie Jackson, owner of the ice cream franchise Kilwins in Chicago, is feeling equally upbeat. Kilwins has a location in the Loop at 310 S. Michigan Ave.

“We feel anything to bring traffic and footsteps to downtown and the Loop is positive,” Jackson said.

Some businesses closing during NASCAR

For the second time, the bookstore Exile in Bookville will close during NASCAR weekend. It also stopped holding author events in the week ahead of the race because of construction noise and road closures.

The shop is located in the Fine Arts Building, 410 S. Michigan Ave., and it’s close to the NASCAR pit, so that part of Michigan Avenue is closed to the public.

Exile in Bookville co-owner Kristin Gilbert inside the bookstore’s location in the Fine Arts Building. The store can see NASCAR’s bleachers from its upstairs location.

“With our street being closed and noise levels at such an extreme, a bookstore cannot operate,” Kristin Gilbert, co-owner of Exile in Bookville, said. “It’s not like we are a bar or a restaurant where extreme noise might be tolerated.”

Gilbert said that independent bookstores rely heavily on sales during the summer to carry them through the slower winter months. Closing during the busy summer season and especially the July Fourth holiday weekend is a blow.

“Every single day counts for independent bookstores,” she said.

Studebaker Theater, also in the Fine Arts Building, will not have any shows during NASCAR for the second year. The venue is often rented out for concerts and shows like NPR’s “Wait Wait … Don’t Tell Me.”

“I wouldn’t want to stage a show that weekend either,” Taylor Hobart, Studebaker Theater’s assistant box office manager, said. “Of course, no one was here last year.”

Osaka Sushi & Fresh Fruit Smoothies, located at 400 S. Michigan Ave., is closing during NASCAR’s two-day event.

Next door, Osaka Sushi & Fresh Fruit Smoothies will also shutter for the second year. Manager Barry Cheung said because of the road closures, UberEats and other delivery drivers are blocked from getting to Osaka Sushi, so the restaurant, at 400 S. Michigan Ave. will close.

Gilbert, of Exile in Bookville said, “If this race served the greater good of the city of Chicago, if it generated tons of money for the city that could be used to help serve it as a whole, we would not mind the sacrifice of closing.”

But that was not the case, according to media reports she read.

“When the city is not making the money they said they were going to make, when small businesses have to close or lose typical business as a result of the race, it is a decision I do not support,” she said.

A young customer reads a book at Exile in Bookville’s shop, located inside the Fine Arts Building in the Loop. Bleachers for NASCAR’s race can be seen through the window.

Buyer’s remorse? Nearly half of EV owners plan to switch back to gas-powered cars, survey finds.

How many electric vehicle owners suffer from buyer’s remorse? A lot more than you might think, according to a new survey from the consulting firm McKinsey & Co.

The survey found that nearly half of US EV owners plan to buy an internal combustion car next time. It’s a finding that could reinforce fears among carmakers that US consumers are cooling on EVs. But the survey also clashes with other research that suggests high levels of satisfaction with battery-powered cars.

McKinsey questioned nearly 37,000 drivers worldwide, including 4,100 in the United States. It included a mix of EV owners as well as people who own internal-combustion engine, or ICE, vehicles. Of all the EV drivers surveyed, 29 percent said they were likely to switch back to an ICE vehicle with their next car purchase. About 46 percent of US survey respondents said they were likely to switch back to an ICE car.

The problem doesn’t seem to be the cars themselves. In the worldwide survey, only 13 percent complained about the experience of driving an EV. The big stumbling blocks are high cost and inconvenience.

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For example, over one-third of all survey participants said a shortage of public charging stations was their biggest reason for regretting EV ownership. About the same number said the cost of EVs was too high and that it was too difficult to take long trips requiring lots of recharging stops. A quarter of EV owners griped that they had no way of recharging the cars at home.

Robert O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association, said some local dealers have told him about customers who’ve come down with EV remorse. O’Koniewski said having a car that has to be slowly recharged rather than quickly refueled can induce culture shock in some owners.

The news isn’t all grim for EV makers. Of the survey respondents who still drive ICE cars, 38 percent said they would consider buying either an all-electric car or a plug-in hybrid as their next car.

In addition, other surveys have found that consumers like EVs. A poll of 300 EV owners taken by CDK Global , maker of software for car dealerships, found that 73 percent planned to purchase only electric cars in the future. Liz Najman, director of market insights at Recurrent , a research company that tracks the EV market, said that its survey of EV owners showed a similar high level of owner satisfaction.

Recurrent asked 250 drivers to rate their EV experience on a five-star scale. Seventy-eight percent gave their cars five stars while another 20 percent awarded four stars.

Still, Najman conceded that the McKinsey survey, based on a much larger customer sample, must be taken seriously. Karl Brauer, executive analyst for the online car shopping service iSeeCars.com, said the McKinsey survey heralds a deepening skepticism about EVs.

“Until relatively recently the perception of EVs and the reality of EVs were not aligned,” Brauer said. “The reality is, if you have a vehicle that takes half an hour on its best day and two hours on its worst day to refuel, that’s a major inconvenience.”

The McKinsey survey comes as EV demand in the United States has tapered off. In the first quarter of 2024, sales of new EVs declined by 15.3 percent compared with the previous quarter, according to Cox Automotive , a company that provides software and services to car dealers. It’s the first quarter-over-quarter decline since 2020.

The slump is largely driven by a sharp fall in sales of Tesla, the most popular EV brand. The company has responded by slashing the prices on new Teslas, which in turn has led car dealers to cut prices on used Teslas to keep them cost-competitive, Brauer said.

A surge of Tesla trade-ins this year has combined with car rental company Hertz’s decision to sell off 20,000 cars in its Tesla fleet, sending used EV inventories soaring and prices plummeting.

Hiawatha Bray can be reached at [email protected] . Follow him @GlobeTechLab .