How to create a business plan for an auto repair shop

According to data from the Institute of Popular Training and Development (INFOCAP), published in its Ruta del Taller 2020 report, Spain has nearly 45,000 auto repair shops — an average of one shop for every 1,173 inhabitants. Considering that the number of registered vehicles in the country exceeds 28 million, and continues to grow steadily, opening a repair shop offers a significant potential for success. In any case, the best way to determine whether the business will deliver the profitability you expect is to develop a well-structured business plan for your auto repair shop.

One of the first aspects to consider when preparing your business plan is the city in which you intend to open the shop. Competition varies greatly from one location to another. The report’s data illustrates this clearly: in the Balearic Islands, there is one shop for every 524 inhabitants, and in Lugo one for every 541. At the opposite end, Cádiz shows a ratio of 1,824 and Valencia 1,697.

Everything you need to know about how to build a business plan for an auto repair shop

If you have assessed that this industry aligns with your business objectives, it is time to get to work and establish a structured business plan. Before launching the shop, you must ensure all elements are well aligned so that everything runs smoothly from day one.

SWOT analysis

The first step is identifying the Strengths, Weaknesses, Opportunities and Threats (SWOT) related to your project. Many internal and external variables can determine success or failure. Elements such as initial investment, space and facilities, equipment, competition, competitive advantages or the ease of accessing advanced technologies must all be considered during the initial phase of the venture.

You must fully understand the auto repair sector and the environment in which you plan to operate, so that you can strengthen your advantages and minimise the aspects that put you at a disadvantage compared to competitors.

Human resources plan

A critical part of any repair shop is the workforce — the employees who will carry out most of the services customers pay for. Therefore, it is important to determine how many people you want or are able to hire, which positions you need, what legal obligations each role implies and the personnel costs you will need to assume.

Depending on the services you offer, you will likely need several types of profiles, such as administrative staff, assistants, specialists, non-certified technicians and certified technicians.

Conducting a market study

A market study will help you identify the areas in which your workshop can differentiate itself. Analyse your competitors: what services they offer, what they don’t, their market share, the prices they work with and the type of customers they attract.

In a business plan, it is also essential to understand which customer needs are not being met in the area where you plan to operate. Additionally, you should analyse what types of vehicles are most common locally, the spending capacity of your potential customers and their consumption habits.

You must also consider the legal requirements involved in opening your business at the chosen location. Based on all these elements, you will be able to define your pricing structure and the services you will provide.

Choosing a location and premises

Once you have clarified the key aspects of your project, it is time to choose the exact location of your repair shop within the selected city. It is important to consider whether you plan to rent or purchase the premises, as the financial and operational implications differ significantly. In addition, proximity and convenience are two of the most influential factors for customers when choosing an auto repair shop.

Financial plan and funding options

An auto repair shop requires a considerable initial investment. You must take into account the costs associated with renting or purchasing the premises, establishing the legal company structure, acquiring the necessary equipment to carry out the work and preparing or adapting the facilities. On top of this, you must factor in the monthly costs related to employee salaries. The most effective approach is to develop a financial forecast that includes expected revenues and estimated expenses.

Once this forecast is defined, any business plan for an auto repair shop must also consider the possible funding paths. Ideally, most of the investment should come from your own resources, and external financing should not exceed 60%.

To complement your capital, beyond traditional bank loans and the possible involvement of private investors, it is advisable to explore grants and financial aid programmes for entrepreneurs offered by the national government, regional authorities or the local municipality.

Building an effective website and developing a marketing plan

Today, having an online presence is essential, whether your business is primarily physical or not. In most cases, new customers will discover your workshop through your website. As your business grows, customer recommendations will gradually become more influential, but everything begins with a strong and professional digital presence.

To achieve this, you must create an attractive and functional website and develop marketing strategies that help your page rank well in search engines. SEO and SEM will be vital components of this process. Offering promotions to new customers is a strategy that often yields positive results, especially during the first months of operation. It is equally important to maintain active social media channels, as they allow you to connect directly with your audience and reach new potential customers.

Additional offline visibility strategies

Alongside your online presence, physical marketing can also be effective. Well-designed signage or flyers distributed in nearby areas can attract new visitors and improve local awareness of your workshop.

Flexible payment solutions

At SeQura, we provide flexible payment methods designed to support your workshop’s customers. With these solutions, your clients can pay for their repairs or for the purchase of spare parts in the way that suits them best. They will be able to choose how and when to pay, without creating any extra burden for you. The more flexibility you offer, the greater your chances of retaining existing customers and attracting new ones.

If you would like to know more about how our solutions work, simply get in touch with us. Our team will review your case and provide personalised guidance with no commitment required.