A how-to guide to starting a car repair business in 2022

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If you’re keen on cars and have mechanical skills and know-how about their parts, opening a car repair business could be right up your alley. Becoming your boss can lead to huge earning potential if you get the business dynamics on point. There’s no better time than this year for you to penetrate the car repair industry.

Starting an auto repair business requires time, money, and enough preparation. Gathering all the information on how to start the business without hurdles is paramount. After all, successfully launching your car repair business is one step closer to achieving your business goals. Once it starts servicing your customers, you can devise auto repair marketing strategies to leverage business growth.

You can refer to this guide as your car repair business becomes a reality:

1. Conduct A Market Research

It’s imperative to conduct market research on whatever business venture you have in mind. Researching the market is crucial to properly navigating the industry, targeting the right customers, and studying your competition. It is somewhat of a risk analysis where you can discover whether the business can be worth all your effort, investment, and time. 

When performing a market analysis, you must decide who your target market is. The target market is divided into several groups or segments within that market that serve advertisements. And if you want to be more specific, you can even break them down into smaller target audience groups. By learning who they are, you can better observe and study behavioural patterns, special needs and wants, as well as service preferences. 

It is also the part where you can study the types of car repair services the group needs, what brand and models of cars they own, and how much they’re willing to pay for repairs. After dealing with this study, it’s time to proceed to your competition. Explore other repair shops in your proximity. Find a way to stand out from them. Offer something better or unique, so customers will choose your brand over theirs.

2. Prepare Business Permits And Licenses 

The next step is to deal with the business legalities. As a business owner, you must make your auto repair business legit and lawful. So, secure all business permits and necessary licenses. Businesses that fail to follow these regulations can be fined heavily or even closed. Hence, completing these requirements is crucial before operating your business. 

Aside from inquiring with national government agencies about business documents, you should also check with the local government entities in your city or town. Lastly, auto repair shops must also comply with environmental regulations at the state and federal levels, so make sure to follow them. 

3. Select The Best Store Location 

Location plays a significant role in business success when opening a physical store. Therefore, you shouldn’t rush the process of searching for the best store location. Keep your shop close to a business centre so that clients don’t have to travel too far. One great tip is to choose an accessible road like the highway or main road where the streets are typically more expansive, meaning there could be more space for car parks. 

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When you’ve selected the best location, create the best layout for your auto repair shop. Give ample floor space for the workshop. Depending on how much square footage you rent, you can decide to have two to four car hoists for performing car repairs. It would be ideal to choose a property with lower levels for each car to be backed off the hoist from the inside.   

4. Decide On Your Service Offerings

Choose what auto repair services come next on the list. It’s vital to offer your customers the right car repair services and know about auto care. Through market research, you now know what the most common car repairs are, so include them in your service menu. Offer specialized and even niche car services so your clients won’t have to switch to other shops when looking for a unique car service. The key is to hire diverse mechanics and technicians who can cover different brands and models of cars. 

5. Secure Business Funding

Finally, funds are among the most important aspects of opening an auto repair business. You must decide where to source your investment money. Some people may use their savings, but some options are available if you’re looking for other alternatives. 

For instance, the Small Business Administration (SBA) offers loans to car repair shops. The Federal Government insures SBA-backed loans, so lenders offer better terms and interest rates. Another financial source can be your family and friends, where you can potentially borrow and agree to the payment terms. 


Opening a car repair business this year is not for the faint-hearted. Like with the rest of your business ventures, you need to be a go-getter and a determined entrepreneur to join the car repair industry. With this guide, you can prepare to launch your business easily and with more knowledge.    

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