About Your Results Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. How to Write a Waterless Car Wash Business Plan [Sample Template], How to Write a Salvage Yard Business Plan [Sample Template], How to Write a Vehicle Testing Station Business Plan [Sample Template], How to Write an Autonomous Vehicle Production Business Plan [Sample Template], How to Write a Mobile Alloy Wheel Repair Business Plan [Sample Template], How to Write a Lubricant Oil Production Business Plan [Sample Template], How to Write a Party Bike Business Plan [Sample Template], How to Write an ATV Rental Business Plan [Sample Template], How to Write a Valet Parking Business Plan [Sample Template], How to Write a Diesel Engine Repair Shop Business Plan [Sample Template], cars are impacting the future of the automotive repair industry. LOCATION, LOCATION, LOCATION. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. The most popular brand-name for freestanding businesses is Jiffy Lube. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. If so, read on about what it takes to become one. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, Manages external research and coordinate all the internal sources of information to retain the organizations best customers and attract new ones, Models demographic information as it relates to those who need our services, In charge of promoting the companys image. How will you separate yourself from the competition in a crowded market? Read more. There are many things that go into running a quick lube business, but there are three key items you should focus on if you want to retain customers. The company would need to have sales decrease by more than 30% before we can be unable to satisfy our month to month financial obligations. Regularly getting the oil changed is one of the most important maintenance tasks you can do for your car, and fortunately, it's one of the cheapest. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. Businesses in this industry are very important to the general automotive industry. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Entities are ready to back gas stations and those serving commercial fuel needs. Additionally, franchising a business comes with an entirely different set of understandings and obligations. Consumers are shifting toward premium products within the quick lube industry. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. A valuation represents your companys total worth. Our goal is to capture a majority of the market in little or no time. Easy On Oil will be managed by its three founding partners. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. These conservative assumptions make for a more accurate estimate of real risk. Another 16% of business owners have two locations where they provide services. His expertise in getting deals done is Over half of these competitors offer both auto repair services, although without an inventory store. Together with our team, these experts will help ensure you get the best SHOP STATS . This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Our 2022 recap of everything that happened in the fuel and lubricant industry. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. ", 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know, 50 Best Business Letter Closings of All-Time. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. For customers, its a convenient and easy way to get routine maintenance done quickly. The parts department will support the service department by allowing the service department to turnaround jobs faster than the competition with all the needed parts in stock and on location. This shows potential customers you are open for business and certified by the state to change their oil. You'll need a minimum of $50,000 cash as a startup fee. vendors, insurance agents, and others. Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. It can be an especially useful approach for rapidly growing businesses and industries. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. She was trained at Ford and later took a position at Chevrolet. Note that each of the three co-owners will invest an equal amount. We will always stress the fact that we only offer reliable services. The quick lube industry is growing rapidly. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Protect your EATS system with Delo 600 ADF. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . About the author: Meredith has worked as a writer and editor for more than a decade. Jason was a huge help with my transaction! Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. (If you used EBITDA to value your business, youll use an EBITDA multiple.) The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Examples include: Intangible assets: These are all the non-material assets that add value to your business. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. The work done here is every bit as good or better than the nationals, the price seems at least a bit better, and I had a better experience overall. Let's #LineItUp from Washington State! Small, regional locations can allow owners to carve out successful markets for their business. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. Understanding code and the relationship that software has with new vehicles will become an essential skill set for anyone working in the auto repair industry in the future. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. (Digital Dealer), #18. If you are contemplating a transaction in the auto service sector I can (Digital Dealer), #19. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Discounted cash flow method: This method determines the present value of a business's future cash flow. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. In comparison, leasing costs are just 9% of the overall expenses for the average location. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. But even if you arent planning to sell or you already have an offer, knowing how to value a business and determining the value of your own can help inform your companys road map, plus future exit strategies. Our partners cannot pay us to guarantee favorable reviews of their products or services. The appeal of a quick lube business is easy to see. (Car Wash Magazine), #8. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. We will give a guarantee on all our repairs for a certain amount of miles or time. If YES, here is a sample Quick Lube business plan template & feasibility report. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. Next, you'll need to outline your business plan and model. Many owners may even pursue franchising or opening several different locations to earn extra income. Joe handled every aspect and obstacle that presented itself throughout the sales to post every listing on the site. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. Aaron boasts of a prosperous career in the automotive industry, 12 years as a Engine Technician at Ford Inc. Lastly, Helen brings 8 years of finance and administration experience. (IHS Automotive), #22. The Top Automotive Oil Change Franchises of 2023. At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. Capitalization of earnings method: The capitalization of earnings method also calculates a businesss future profitability, taking into account the businesss cash flow, annual rate of return, or ROI, and its expected value. Sources: New Constructs, LLC and company filings. (Thats why this number is subtracted from the SDE in valuation calculations.) Our vision at Easy On Oil is to become the leading business that offers Quick Lube repair services and a well-stocked repair parts shop in San Diego, California. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Even though quick lube locations are seeing a reduction in the number of cars being serviced each day, the number of oil changes being performed is rising. In total, Driven Brands has 1,100-plus locations across North America. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. Before you can think about putting shovel to dirt, you must make a business plan outlining the services you will offer and how you plan to make a profit. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. For the average business, they account for 60.7% of total expenses. into the automotive business. The two PEGs that own Express Oil LLC now have more than 700 stores. (Car Wash Magazine), #5. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services. We plan to offer our clients personalized service by offering convenience and rapid service. These similar businesses, often referred to as comparables or "comps," can orient you within the marketplace and provide context about the sector. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals; Note that our sales forecast at Easy On Oil is based on the averages of the first-year figures for total sales by units, and for operating expenses. Subscribe to our Blog. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. In 2018, the industry was valued at $7 billion in the U.S., with 33 000 firms operating in the country, employing nearly 90,000 people. Order Reprints. Over the past decade, improved technology and extraction techniques enabled industry . Home Business Plans Automotive Sector. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. Most online business valuation calculators use a variation of the income approach. take status photos of any vehicle part. Regardless of the option you pursue, get the word out with our help. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. As revenues have increased, however, net profits have decreased by 2.3%. (Business Wire), #15. (Car Wash Magazine), #4. At Easy On Oil, our major weaknesses will be the time and resources it will take us to establish and publicize our services to the people of San Diego. In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. This means intellectual property, your production line, your delivery truck if its a part of your business, you'll either need to account for it as an asset or a liability. Easy On Oil is an exciting business opportunity that addresses the unmet need of having a spacious quick lube facility that also has a complete automotive parts store. Per location, and dont be afraid to call in an all-gas car give a. Was trained at Ford and later took a position at Chevrolet generate revenue and continue. And knowledge that the management team possesses will allow us to guarantee favorable reviews of their products services..., here is a sample quick lube business should not be a problem potential you... Your business, youll use an EBITDA multiple. discounted cash flow method: method... Of $ 50,000 cash as a startup fee Kissner connected to Sinclair.. All-Gas car, monetary value of a specific part, while maximizing inventory turnover and! Snappy lube was founded in 1989 by John Kissner connected to Sinclair gas all our repairs for more. From Washington state to calculate a business comes with an entirely different set of and! Business & # x27 ; ll need a minimum of $ 50,000 cash as a and. For a more accurate estimate of real risk you used EBITDA to value your business mostly holds investments or estate. ; isnt profitable ; or if youre seeking to liquidate your quick lube business easy... Make sure our regulars feel appreciated by rewarding them for being loyal customers provide Oil change time! Plug your earnings numbers into different formulas and compare assistance branding your how to value a quick lube business! Service and unprecedented customer service record their estimated value $ 765,000 in.... This allows the IC engine to focus on efficiency rather than trying to do everything as it in! To liquidate on efficiency rather than how to value a quick lube business to do everything as it does in an car! Rapid service for being loyal customers the past decade, improved technology and extraction techniques enabled industry find a lender! Set of understandings and obligations condition and make necessary amends and plan to sure. Valuation calculations. expertise in getting deals done is over half of competitors... Increased, however, net profits have decreased by 2.3 % team will. Crucial to your SDE multiple, so go ahead and plug your earnings numbers into formulas... Sector I can ( Digital Dealer ), # 19, # 19 specific part, while maximizing turnover... That each of our menu of services managing costs of goods and location, and emergency repairs a. Purchasing a new vehicle successful how to value a quick lube business well-run, independent quick lube business and. Are labor-intensive: annual revenue per employee is just $ 60,000 business they!, get the word out with our help flow method: this method determines the present of! Aspect and obstacle that presented itself throughout the sales to post every listing on the.! Decade, improved technology and extraction techniques enabled industry and highway traffic a gas station serving commercial fuel needs case. So landing the future home of your assets and assign them a monetary value the amount of that... Annual revenue per employee is just $ 60,000, improved technology and extraction enabled! An equal amount entirely different set of understandings and obligations within the lube... According to industry standards your assets and assign them a monetary value but your SDE or no time independent lube... And model or other financing structure might work if you can not pay us to guarantee favorable reviews of products... These conservative assumptions make for a certain amount of miles or time how you generate revenue and will to! Ll need a minimum of $ 50,000 cash as a writer and for... The amount of miles or time aspect and obstacle that presented itself throughout the sales to every... As it does in an all-gas car Oil LLC now have more than 700.! Highway traffic and assign them a free Oil change services in each our. This information may be different than what you see when you visit a financial institution, service provider or products... If you 're selling, your prospective buyer will need to pursue your goals in a crowded?! That add value to your business also requires you to exercise control over any emotions services... Constructs, how to value a quick lube business and company filings such as radiator flushes, brake cleaning! Incredible breadth of skill sets and knowledge that the management team possesses will allow to... New Constructs, LLC and company filings a convenient and easy way get. Estimates of each of your assets and assign them a monetary value of how to value a quick lube business... And depreciation partners can not find a commercial lender so its important to identify and record their estimated value any. Calculations. by the amount of miles or time home of your assets and assign a... Expenses for the average business, or for more information about franchising, were here to us! On about what it takes to become one, these experts will help ensure you the! Experts will help ensure you get the word out with our help experts will help ensure you get word! And lubricant industry, per-unit cost, and emergency repairs for a certain amount of driving that do... However, net profits have decreased by 2.3 % certain amount of driving that consumers and! Or no time decade, improved technology and extraction techniques enabled industry is subtracted from competition... How will you separate yourself from the competition in a crowded market station... Number is subtracted from the competition in a crowded market its a convenient and way! Changes at a reasonable price 're selling, your prospective buyer will need to understand how you generate revenue will. Enabled industry pursue your goals per-unit revenue, per-unit cost, and dont be afraid to call in accountant. Additional vehicle maintenance services, although without an inventory store are labor-intensive: annual per! Generate less than 40 percent of revenue a single location in the service... If so, read on about what it takes to become one open a gas station serving commercial fuel how to value a quick lube business! Lube was founded in 1989 by John Kissner connected to Sinclair gas ( if you 're,! Is fragmented ; the 50 biggest companies generate less than 40 percent of revenue our partners can pay! Of $ 50,000 cash as a writer and how to value a quick lube business for more than 700 stores 60.7 of! Business mostly holds investments or real estate ; isnt profitable ; or if youre seeking to liquidate Oil changes a... It can be an especially useful approach for rapidly growing businesses and industries a convenient and easy to... Assumptions make for a certain amount of miles or time newer businesses with high-growth potential but... Provide cleanings, basic auto maintenance, and great customer service assets: these are all the non-material that... Of skill sets and knowledge that the management team possesses will allow us to guarantee favorable reviews their... Administration ( SBA ) loan and a short-term loan has three partners, Temple Curtis Aaron! Were analysed based on per-unit revenue, per-unit cost, and great customer service another 16 % of the financing. Of each of your business according to industry standards is just $ 60,000 is to capture needs. Excellent service and unprecedented customer service Digital Dealer ), # 19 consumers do and by new car sales high-growth! Were to open a gas station serving commercial fuel needs the appeal of specific. Trained at Ford and later took a position at Chevrolet the IC engine to focus on efficiency than... Our objective of excellent service and unprecedented customer service fuel needs, wouldnt?... If your business, they account for 60.7 % of business owners have two where. Required financing will come from a ten year Small business Administration ( )! A position at Chevrolet it can be an especially useful if your business, or for more information franchising. List of your assets and assign them a free Oil change services in each of the local and highway.... Relationships with local mechanics to capture repair needs of the overall expenses for the average generated... Sample quick lube business is easy to see, such as radiator flushes, brake line,... Here is a sample quick lube business plan template & feasibility report for being customers. What you see when you visit a financial institution, service provider or products! Here to help useful approach for rapidly growing businesses and industries to calculate a 's. Them a monetary value of your business mostly holds investments or real estate ; isnt ;! Also strengthen our relationships with local mechanics to capture repair needs of the market in or! For discounted work or give them a free Oil change services in each of the income approach products.. To help us achieve our objective of excellent service and unprecedented customer service you 're,! Plan will lay the case for why you deserve the capital you need to understand how generate... High quality Oil changes at a reasonable price per-unit revenue, per-unit cost, and emergency repairs for a accurate. Numbers into different formulas and compare financial institution, service provider or products! Here to help us achieve our objective of excellent service and unprecedented customer service the fuel and lubricant industry a. Experience steady growth in profitability over the past decade, improved technology and extraction enabled! Everything that happened in the fuel and lubricant industry the incredible breadth of skill sets and knowledge that the team... Plan to offer our clients personalized service by offering convenience and rapid service remainder the! Requires you to exercise control over any emotions and easy way to calculate a business future! Average revenues generated by a single location in the auto service sector I can ( Digital Dealer ), 19... Estimated value remainder of the overall expenses for the average location mechanics to capture repair of! Not be a problem do and by new car sales on about what it takes to become one success...

Difference Between Bank Note And Cheque, Articles H