How To Set Up A Workshop

04 Dec 2020

Starting any business is hard. If you are thinking of starting a mechanic workshop there a many things you need to consider.

Workshop Mate has the complete guide on how to start a Automotive workshop.

1. Business plan

If you fail to plan, you plan to fail. A business plan is the foundation of what you want your workshop to achieve.

Business plan outline:

Executive Summary: This is an outline of your vision for the workshop. Why are you setting off on this journey? What market are you are trying to capture? and Where do you want to be in 5 years time?

Opportunity: Describe what you aim to achieve. Detail what you will provide the customer and how to intend to do it.

Market Analysis Summary: This is incredibly important. This is a summary of your intended target market. How will you go about getting customers into your workshop. This section will need to be re-evaluated frequently.

Execution: A statement on how you are going to acquire customers, is this through advertising? What will you need to achieve your vision?

Company and management summary: An overview of your workshop. This should describe key members of your workshop and what you want them to achieve on a day-to-day basis.

Financial Plan: The financial plan is crucial for the success of your workshop. This section includes sales forecasts, profit, loss, cash flow statements and balance sheets. This would also include a brief description on why you have made the financial goals you have.

2. ABN number

To trade legally in Australia, you are required to have an ABN (Australian Business Number). An ABN is a unique number that identifies your business. An ABN is required for both TAX and accounting purposes. Without an ABN you will not be able to trade.

To apply for an ABN click here.

3. Motor Vehicle Repair License

To commence works on automobiles you must have a valid motor vehicle repair license. Licenses range from 1, 3 or 5 years and will need to be renewed once expired. To gain a license you will need to complete eligibility tests and consent forms. Click here for more information.

Set up your Workshop Accounting

Xero and MYOB are two simple and easily accessible accounting packages that reduce hefty bookkeeper time and fees. Both Xero and MYOB can help your Workshop record expenses and income so you can track your workshops performance.

5. Premises

You will require a safe and suitable location to trade in. We strongly recommend getting an WHS inspector into your site prior to renting the space. You need to see if the location is safe to trade without being a cause of harm for your staff, and the public.

6. Tools and Equipment

There are many tools and equipment you will need to perform repairs on motor vehicles. As noted by common tools required for automotive Workshops include –

    • Pliers
    • Wrench set
    • Ratchet and Socket Set
    • Screwdrivers
    • Hammer
    • Car Jacks
    • Jack Stands
    • Ramps
    • Creeper
    • Air Compressor
    • Headlamp
    • Multimeter
    • Wrecking Bar
    • Pry Bar
    • Rolling Tool Chest
    • Jump Starter
    • Brake Cleaner Spray
    • Pressure Washer
    • Brake Bleeder
    • Battery Carrier

7. Get a Workshop management software to streamline your day-to-day tasks

Your focus should be repairing cars. Workshop Mate is a complete management software that supports and automates the daily tasks of running a automotive workshop. Workshop Mate streamlines your jobs, invoicing, accounting, inventory management, bookings, service history and so much more all in one central location.

Get your free trial of Workshop Mate here

8. Online Presence

Having a great online presence is key to operating a successful workshop.

Must have online webpages

Facebook page: Facebook is the most popular platform in Australia with over 17 million users. Having a Facebook page where leads can search, enquire and book in for a service is essential. 

Google my business page: Google is the largest online search engine and advertising tool. Having a Google my business account will allow you to engage with the largest audience on earth. When a potential customer searches for a local mechanic your business will appear.

Online reviews: Having online reviews for your workshop on will show potential customers, what you have done previously for customers.

A website: Your website should be the go-to destination for all your workshop in the digital age. 

DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature.