There are four primary types of insurance: Commercial property: You may also go for a policy tailored for small to medium-sized businesses, known as business owners policy or BOP. The insurance amount may increase or decrease depending on what kind of deductible and coverage your insurance provider is offering. You’ll need to have insurance for your shop space as well as for individual instruments and equipment, which is quite necessary, in case you, unfortunately, have an accident. Insurance is one of the most significant auto repair shop expenses. Rent may take around 6 to 7% of your auto repair shop monthly expenses. Otherwise, the simplest jobs like car-washing and tire changing may suffer. These utilities have to be paid regularly. The same goes for utilities like water, gas, and electricity. But it will depend a lot on what kind of services you are availing, and how much space they are going to take. On average, the rent goes for roughly around 8000$. So you should know what the regular auto repair shop expenses are: Rent & Utilities:įirst and foremost, you’ll have to pay your rent (if the shop space is rented), which may differ according to area and size. In addition, you’ll have to calculate any overhead expenses that may come in the future. So you’ll have to create a fixed budget and adhere to it if you want to make a profit every month and stay afloat. Unfortunately, more than 60% of the new auto repair shops fail due to not having a strict business plan and budget or not adhering to it. That’s where you need to be extremely careful and calculated. Before you open your automotive repair shop, one of the most significant aspects of a day-to-day business plan is the budget.
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