{"id":196106,"date":"2020-01-09T08:13:33","date_gmt":"2020-01-09T16:13:33","guid":{"rendered":"https:\/\/www.nationalfunding.com\/blog\/?p=196106"},"modified":"2023-03-21T12:55:35","modified_gmt":"2023-03-21T19:55:35","slug":"auto-repair-shop-business-plan","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/auto-repair-shop-business-plan\/","title":{"rendered":"How to Create an Auto Repair Shop Business Plan"},"content":{"rendered":"

Jack’s Car Clinic opened three years ago on a shoestring budget, with some borrowed tools, personal savings and financial assistance from family members. Now word-of-mouth about the auto repair shop’s stellar service keeps a steady stream of customers driving into Jack’s garage. Jack sketched out a loose auto repair shop business plan in a notebook before launching the company, but never got around to formalizing it. Now the business is ready to grow, and a small business loan<\/a> would help provide the resources Jack needs to expand. To prep for the loan application process, Jack needs to update his business plan to show lenders.<\/p>\n

If you, like Jack, are an auto repair shop owner who is facing the task of writing a formal business plan for the first time \u2014 or updating an old plan \u2014 you may need help getting started.<\/p>\n

Here’s a guide to help you develop an auto repair shop business plan that will get your new venture on track for greater success.<\/p>\n

Why You Need a Business Plan<\/h2>\n

It probably doesn’t matter to Jack’s loyal customers that the car shop started up with a business plan that would fit on a repair order form. They only care that the shop’s reliable service keeps their vehicles in mint condition. But a potential lender may require more thorough paperwork to assess whether Jack’s business is a good investment.<\/p>\n

If you’re thinking of applying for an auto repair business loan<\/a>, you can’t afford to put off creating a business plan any longer. A solid business plan may help potential lenders feel confident that you know how to manage an auto repair shop and have a clear vision for how you want to use the loan funds to grow your business.<\/p>\n

How to Structure Your Business Plan<\/h2>\n

There’s no single business plan template, but it’s probably wise to adhere to some of the more common practices and traditional lender expectations.<\/p>\n

Business plan styles generally fall into one of two categories, according to the U.S. Small Business Administration<\/a>: traditional or lean startup. The more common, traditional plans are longer and more detailed, while lean startup plans stick to brief summaries that typically fill a single page, according to the SBA.<\/p>\n

Your choice may depend in part on the preferences of the lenders you plan to approach, keeping in mind that some lenders may not require you to have a formal business plan at all. The SBA notes that business owners seeking financing from traditional sources may want to go with a traditional business plan. Other considerations include the complexity of your business and how often you expect to update your plan.<\/p>\n

Ultimately, your goal should be to write the auto repair shop business plan that best fits your company’s current needs and guides it to the next stage.<\/p>\n

Lean and Traditional Business Plans<\/h2>\n

The SBA lists nine common elements each for lean startup and traditional business plans, with the former list taken from the well-known Business Model Canvas template, created by Swiss business theorist Alexander Osterwalder.<\/p>\n

Sections of a Lean Startup Business Plan<\/strong><\/p>\n