5 Things You Need to Know Before Opening an Auto Repair Workshop

15 Nov 2022 Helpful Tips


Thinking of opening an Auto Repair Workshop? Opening a Workshop is an exciting but challenging experience. If you are thinking of opening your own workshop, the worst thing that you can do is go in unprepared.  

While opening a Workshop does present it’s challenges, it’s not something to be intimidated by. If you have a strong passion and desire for auto servicing and repairs as well as a knack for running a business, there is no reason to suggest you won’t be a raging success! 

Here are 5 Things You Need to Know Before Opening an Auto Repair Workshop.  

1. Location is Key

You may have heard this a thousand times, but it can’t be understated. When it comes to running any business, location is key. To be successful in the Auto repair industry you need to choose a location that is both scalable and generates strong awareness. 

Another thing that you need to consider when it comes to location is other competitors in the area. You don’t really want to start a Workshop across the road or besides a competitor. That’s why it is important to choose a good location that provides many upsides for future growth and high awareness. The easier a customer can find your Workshop, the better! 

2. High Start Up Costs

This may hurt you to hear, but it is incredibly expensive to start an automotive Workshop. Not all Workshop owners completely understand how much money is required initially to set up and start operating. 

When it comes to the amount of money you should expect to outlay on the initial start up of the business, it will heavily depend on what type of workshop you want to operate and more importantly where you want to operate.  

If you are thinking of starting a Mechanical Workshop, some of the initial costs you will need to cover include:  

  • Location Lease & Rent
  • Shop Fitout
  • Initial Equipment
  • Business Licensing Fees (ABN, Trademark etc)
  • Initial Parts & Supplies
  • Electricity
  • Business Insurance
  • Staff
  • Marketing

Many businesses start their journey behind the eight ball because of a lack of understanding of how much money you need initially. If you are thinking of starting a Workshop you need to strategically plan for the up-front expenses. Keep in mind that your business will not be a raging success overnight, it will take time to find your footing and build a loyal customer base.  

3. Success will Take Time

On the topic of success, no business is an overnight success. You will need to consider initial lean months as you will have to build your customer base from scratch.  

It is important that you plan your business spending appropriately, you need to be able to maximise trading without large amounts of customers in your first initial months. Failing to plan your spend could put you on the path of insolvency just as you start.  

4. Nail Down Your Services

Another common mistake that so many Mechanical Workshop Owners make is not strategically planning what type of services they are going to provide. What type of Workshop are you going to be? Are you going to cater for all vehicles? Are you going to create a niche and just target electric vehicles?  

You will need to nail down the services you are going to provide prior to launch. The reason being is you will need to spend different amounts on tooling, equipment etc. depending on the services you are going to provide.  

5. Find Reliable Parts Suppliers

As a Mechanical Workshop, your parts supplier will make or break success. You will need to choose a supplier that is both cheap and reliable. It is important that you choose your supplier wisely as whatever price you buy parts for will impact the customer. 

Reliability is just as important as price in the mechanic trade. The last thing you want its to have to wait days and weeks on end for vital parts. When that happens, it will impact the customer and often lead to them not coming back. Before you choose a supplier, it is important that you compare each option on the market, weigh up their positives and negatives and choose the best option for your shop’s unique needs. 

Final Word,

Starting a Workshop is both an exciting and challenging process. Setting up a Workshop is not as simple as many may think, it takes a high level of planning and strategy to be successful. The 5 presented need to be known and understood prior to beginning the journey of starting an auto repair workshop.  

We hope you enjoyed reading this article. To read more article like this, please visit the Workshop Mate latest news page here.  

About Workshop Mate,

Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth. 

Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application. 

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