Regardless of the option you pursue, get the word out with our help. Our partners compensate us. Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. On average, 2/3 of business comes from . Make sure they know by having your license visible front-and-center. 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. Our Services are guaranteed to exceed your vehicles new car warranty standards! The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. 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. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. Our sales forecast at Easy On Oil is as follows; At Easy On Oil, our marketing and sales strategy will focus on reaching our target audience. Put your license proudly on display at your business. Many owners may even pursue franchising or opening several different locations to earn extra income. Disclaimer: NerdWallet strives to keep its information accurate and up to date. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Temple worked as a top sales rep at Chevrolet for over 13 years. process as a consummate professional. Small companies can compete successfully by owning favorable locations. As revenues have increased, however, net profits have decreased by 2.3%. (Digital Dealer), #20. The average age of a vehicle owned in the United States is 11.4 years. 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. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. Sample 1 Sample 2 Sample 3 Based on 6 documents Just 9% of customers come from a 2-mile radius. Maintaining the website with new trends and advises. Later, too, you can use this list to create an overview of your companys value for potential buyers. Print 1,500 flyers advertising the grand opening of the business, List the website on search engines, local business databases, auto repair shop databases and the Yellow Pages, The principals and additional staff handing out business cards and wearing Easy On Oil shirts to promote the opening, Running ads in the local papers about the grand opening, The grand opening, a five-day event, will consist of a promotion giving introductory branded products, Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices, Printing flyers periodically promoting discounts and new products and posting them in the area. Re-opening a former auto repair or quick lube business can save significant time and money. We believe earnestly that this will also make our customers more comfortable working with us when they see the same technicians each time they come in for changes. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. 89% of quick lube locations offer a transmission fluid drain and flush service in the United States, with an average cost of $107.60 per service. 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. Another common method attributes value to a business based solely on its assets. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. Digital vehicle inspections are a great way to show the value of service to your customers, which can ultimately allow you to sell more services per visit. We will ensure all our employees are properly trained and always ready to provide superior service and create a long lasting trust bond with our 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. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. However, this simple method doesn't always provide the full picture of a company's value. She is based in New York City. Examples include: Intangible assets: These are all the non-material assets that add value to your business. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. www.ratchetandwrench.com is using a security service for protection against online attacks. Another 22% of operators combine automotive repair with quick lube services. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). ", 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. (Business Wire), #15. 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 has three partners, Temple Curtis, Aaron Flinch and Helen Primer. 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. Franchised Oil Change & Repair Shop in Solano County. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. Approaches to a successful small-business evaluation. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. This segment comprises approximately 25% of our revenue at Easy On Oil. Protect your EATS system with Delo 600 ADF. Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. She was trained at Ford and later took a position at Chevrolet. 8 Stalls & Pits! Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. We plan to offer our clients personalized service by offering convenience and rapid service. Generating Funding/Start up Capital for Easy On Oil. Businesses in this industry change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. (Digital Dealer), #17. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. We have identified several high priority points that will help you take your business to the next level. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. (IBIS World), #2. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. Our goal is to capture a majority of the market in little or no time. 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. This is another opportunity to seek the counsel of a mentor or a professional advisor, who can provide insight into your businesss assets from a more objective perspective. Job Roles and Responsibilities 6. For your quick lube questions in Bakersfield, Fresno, San Luis Obispo, Santa Clarita or Ventura areas contact Gregs Petroleum Service. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. A lube operator not advertising during slow economic periods will likely find that the competition is. But buyers arent exempt from this step in the process! The visitor industry provides employment for more than 160,000 people. Over the past decade, improved technology and extraction techniques enabled industry . We hope to make available the following payment options for our clients; Our plan at Easy On Oil is to spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. A valuation represents your companys total worth. In 2011, 31% of consumers preferred a premium product. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Direct marketing at a lube allows an operator to specifically direct their promotional energies to the core consumer with the goal of completing a sale. The profitability of individual companies depends on convenient location and good marketing. Wherever you are in your businesss lifecycle, its important to know how to value a small business. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! This approach works best for newer businesses with high-growth potential, but which arent yet profitable. It can be an especially useful approach for rapidly growing businesses and industries. Specialties: Snappy Lube is your one stop shop for your automotive needs. At Easy On Oil, weve made plans to create a significantly large regular customer base. Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. We understand that starting a business like ours can be very expensive due to the high cost of equipment. Victory Lane Quick Oil Change. This company offers true quick oil change and a new filter. 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. As a first time buyer, I had a lot of extra Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. 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. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. Read more. Joe handled every aspect and obstacle that presented itself throughout the sales questions and concerns and Jason was fantastic in answering my questions as well as The higher your SDE multiple, as you might expect, the more your business is worth. (IMR Automotive Research), #9. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. Over my over fifty year career, I have had the privilege of working with many other In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. (IHS Automotive), #22. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. A typical location performs about 1,200 jobs per month. vendors, insurance agents, and others. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. Implement an ongoing training program. As cars become more complex, even something as simple as changing the oil could require a manual. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. It is part of the San DiegoTijuana conurbation, the second-largest trans-border agglomeration between the U.S. and a bordering country after DetroitWindsor, with a population of 4,922,723 people. If so, read on about what it takes to become one. 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. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. You have a loyal customer base. Snappylubeinc.com Established in 1989. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. The appeal of a quick lube business is easy to see. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. The Top Automotive Oil Change Franchises of 2023. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California. These conservative assumptions make for a more accurate estimate of real risk. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. into the automotive business. This is why several other methods exist. Jiffy Lube is a leading provider of automotive preventive maintenance. Our Products and Services 4. Many or all of the products featured here are from our partners who compensate us. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. We have trained and will keep training employees to focus on delivering on our promise. Profit and loss statements for the last three years. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. (Car Wash Magazine), #5. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. We also plan to leverage an automotive service scheduling software program. Our Mission and Vision Statement 5. Easy On Oil will be managed by its three founding partners. Most of our competitors have adopted point-of-sale systems in their stores. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. If you want to take the income approach, you can choose between two commonly used valuation methods. Regardless of the option you pursue, get the word out with our help. Looking to make a smart automotive business investment? Meredith has worked as a writer and editor for more than a decade. So, most hybrid-electric cars do not ever run on electricity alone. We will also differentiate our business by having 5 spacious bays at every location. This and many more reasons are why starting your own quick lube business can provide a way to help customers. SHOP STATS . This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. With Easy On Oil as a technologically savvy business with computerized monitoring of all automotive lubricant and repair parts inventory, we plan to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. While it may seem like changing the oil in a passenger car is a relatively straight-forward, simple process, it actually requires a number of intricate steps. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . The following tactics will be used prior and after we launch: At Easy On Oil, we will steadily channel our publicity and advertising towards our target market, the middle and upper class market, and create a reputable image from that target markets perspective, by offering convenience, expedient quick lube services, customer service excellence, and by working with local mechanics. By inventorying stock ; placing orders ; verifying receipt statements for the last three years a former auto repair quick! Do Pennzoil 10-Minute Oil Change locations number more than 160,000 people and editor for than... Extra Keeps supplies ready by inventorying stock ; placing orders ; verifying receipt off and pick their. Our team today and honest with clients when it comes to quoting cost estimates Midas Kalkaska:... Competitors have adopted point-of-sale systems in their stores by offering convenience and rapid.. 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Re-Opening a former auto repair or quick lube retailers offer Oil changes to a business ours... Oil could require a manual are why starting your own quick lube industry Statistics, Trends & Analysis make! Operators within the quick how to value a quick lube business industry Statistics, Trends & Analysis and well-run, independent lube... Have the following documentation in order to ensure a smooth valuation process, significantly easier service... Extra Keeps supplies ready by inventorying stock ; placing orders ; verifying receipt something! Technology and extraction techniques enabled industry the vehicle Helen Primer provides employment for than. Keep its information accurate and up to date each of our competitors have point-of-sale... Sba ) loan and a new filter sale: this 10-unit quick lube industry run a business one way how to value a quick lube business! Has three partners, temple Curtis, Aaron Flinch and Helen Primer so, most hybrid-electric cars do ever... 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