Auto Repair Shop Business Plan

Starting an auto repair shop is exciting, but turning that idea into a strong business plan can feel overwhelming.

You might already know what services you’ll offer, what tools you need, and who your customers are—but putting it all together in a clear plan is often the hardest part.

Many shop owners face the same struggle—setting the right goals, estimating costs, and writing in a way that appeals to lenders or investors.

That’s why this auto repair shop business plan example is designed to make the process easier. It guides you step by step to create a plan that’s clear, practical, and ready to use.

Auto Repair Shop Business Plan Sample

Let’s take a look at the AccelCraft AutoCare business plan sample to better understand the essential steps and elements you need to include in your own plan.

1. Executive Summary

AccelCraft AutoCare, LLC will open a full-service auto repair shop at 412 Precision Drive in Dallas, Texas. The owner, Ethan Blake, is a certified master mechanic with more than 14 years of real shop experience.

Ethan spent many years at a dealership and noticed something clearly: Customers often felt they were paying too much or didn’t trust small garages.
So, he started AccelCraft to give people fair prices, honest help, and repairs they can count on.

The shop will serve three main groups:

• Families and professionals in University Park and Highland Park who want quality service at better rates than dealerships.
• Students from SMU (Southern Methodist University) who need affordable and reliable car care.
• Local small businesses that use vans and trucks every day for work.

AccelCraft stands out because it uses modern tools and simple communication. Each customer gets a short digital report with photos and notes. The shop will recycle oil and waste safely and complete most repairs the same day.

A bilingual team will help both English and Spanish-speaking customers. To start the shop, Ethan plans to get a $480,000 SBA loan from Wells Fargo.
He will also add $120,000 of his own money. This funding will cover setup costs, tools, inventory, and working capital.

The financial plan is based on real market data and steady growth.
With an average job cost of $325 and a loyal customer base, AccelCraft expects to:

• Make about $1.15 million in the first year.
• Grow to $1.55 million in the second year.
• Reach $2 million by the third year, helped by new fleet service contracts.

Break-even is expected by mid-2027. The shop will need about 190 jobs per month to cover costs. This is realistic with the planned staff and six-bay facility.

Key milestones include signing the lease in April 2026, finishing the buildout by July, hiring staff by August, and opening in September.

AccelCraft AutoCare will be a community shop where customers get clear answers, skilled repairs, and honest prices every time.

2. Business Overview

AccelCraft AutoCare, LLC is a full-service auto repair and diagnostic shop at 412 Precision Drive, Suite 120, Dallas, Texas. It is a Texas Limited Liability Company owned by Ethan Blake, an ASE Master Certified technician with over 14 years of auto industry experience.

Ethan started the business after years at Park Cities Ford. He noticed many customers were unhappy with high dealership prices and unclear repairs. AccelCraft AutoCare was created to fix this by offering fair prices, honest work, and clear updates.

The shop is 4,800 square feet and sits in the Park Cities–University Park area, a busy place with families, students, and small business owners. It has a customer lounge, repair bays, and safe storage for tools and parts.

AccelCraft offers maintenance, diagnostic, and repair services for all kinds of cars — domestic, imported, and hybrid. The goal is clear — build trust through good service, fair pricing, and fast work. The shop aims to make $1.55 million in revenue by the second year and $2 million with 15% profit by Year 3.

The long-term goal is to make AccelCraft the most trusted local auto shop in University Park. It will do this through honest service, clear digital reports, and bilingual help.

Startup Summary

Strategic Objectives

1. Launch operations by Q2 2026 after completing facility setup and equipment installation.
2. Serve over 600 regular customers and 8–10 fleet contracts by the end of Year 3.
3. Reach $2 million in annual revenue and 15% net profit by Year 3.
4. Establish AccelCraft as the most trusted independent auto shop in University Park through transparent service, digital health reports, and bilingual support.

3. Industry and Market Research

The global auto repair and maintenance industry is growing fast. It was worth $779.3 billion in 2024 and is expected to grow at 5.7% per year from 2025 to 2034.

(Source)

In the U.S., the market is rising due to more vehicles, older cars, and higher maintenance needs. The trend is even stronger in Dallas.

The city’s growing population, large number of vehicles, and higher-than-average car age create a solid customer base for AccelCraft AutoCare. By its third year, the shop expects to serve over 600 regular customers and hold 8 to 10 fleet service contracts, reaching more than $2 million in yearly revenue.

The Park Cities and University Park neighborhood, where AccelCraft will operate, has a diverse and valuable customer mix:

• Families and professionals with household incomes above $120,000 seek high-quality service at better rates than dealerships.
• Southern Methodist University (SMU) students drive mid-range sedans and SUVs and prefer affordable, trustworthy mechanics.
• Local small business owners—such as electricians, landscapers, and delivery drivers—rely on fleet vans and trucks daily. They prioritize fast turnaround and reliable contracts over low prices.

Market Size

The Dallas auto repair industry is growing steadily as more vehicles age past warranty periods. The demand for independent shops is strong because customers want more personalized service than dealerships can offer.

A simplified TAM/SAM/SOM analysis for AccelCraft’s service area looks like this:

This shows that even a small share of the local market can create a profitable business for AccelCraft.

Target Segments

AccelCraft AutoCare has three clear customer groups:

1. Families and professionals in University Park and Highland Park who want dealership-level quality but at fair prices.
2. Students from SMU who need affordable and reliable repair services.
3. Local fleet owners who require dependable contracts to keep vans and trucks on the road.

Competitor Landscape

The shop will face competition from both dealerships and independent garages. The most direct competitors near the University Park area include:

Besides these main competitors, AccelCraft AutoCare also faces some indirect competition in the area. Mobile mechanics and quick-lube stores attract people who want fast or low-cost jobs like oil changes or tire checks.

Auto parts stores such as AutoZone and O’Reilly also draw customers who like fixing small issues on their own. But these places usually don’t offer full checks, certified work, or service warranties.

AccelCraft provides complete, dependable repairs handled by skilled technicians, giving customers real value and confidence.

Competitive Advantage

AccelCraft AutoCare will stand out from these competitors by focusing on a mix of modern tools, clear communication, and community-first service.

Key differentiators include:

• Digital vehicle health reports with photos and simple explanations.
• Transparent pricing with approvals by text or email before work starts.
• Same-day turnaround on common repairs and maintenance.
• Bilingual (English/Spanish) staff support to serve more customers comfortably.

This approach positions AccelCraft between dealerships and small independent shops—offering the quality of the first and the trust of the second, at a fair price point.

4. Service Offerings

AccelCraft AutoCare will deliver a wide range of repair and maintenance services. The shop will focus on clear pricing, quality parts, and quick turnaround. Customers will also receive digital health reports with photos so they always understand what work is needed.

Main Service Menu

Here’s the main repair and maintenance services AccelCraft offers, giving customers a clear idea of what each service includes and costs.

Seasonal Packages

The shop will run special seasonal offers to keep customers coming back year-round.

1) Summer A/C Check – $160

Inspection and recharge to handle Texas heat.

2) Winter Bundle – $179

Battery and wiper replacement for cold months.

Fleet Services

Fleet contracts provide a strong growth opportunity. Local trades and delivery companies depend on vans and trucks every day. The following are the benefits for fleet owners:

• $85/hr labor with a 10% discount on parts.
• Priority scheduling during early mornings and late afternoons.
• Preventive checks to cut downtime.
• Digital photo reports for managers to track work.

Vendor Partnerships

To guarantee a steady supply and fair pricing, AccelCraft will partner with leading vendors:

• NAPA (National Automotive Parts Association) and Advance Auto  Parts for reliable and timely delivery of auto components and repair materials.
• Valvoline for oil and fluids through bulk contracts.
• Hunter Engineering for alignment systems and lifts.

Service Delivery

The way services are provided will set AccelCraft apart. Customers will always get upfront repair estimates, photos, and explanations. Jobs will not begin without approval. Most services will be completed the same day, and the staff will be bilingual to better serve the community. All waste will be recycled responsibly to meet EPA (Environmental Protection Agency) standards.

5. Operations Plan

Daily Operations

AccelCraft AutoCare will be open six days a week. Hours will be: 7:30 a.m. to 6:30 p.m. Monday to Friday, and 8:00 a.m. to 4:00 p.m. on Saturday. Staff will work in rotating shifts to ensure the shop maintains full operational coverage throughout the day, reducing customer wait times.

This picture shows how the shop will be set up to keep service running smoothly during the day.

Staffing Plan

The shop will run with a skilled but small team. Ethan Blake will lead repairs and make sure the work is done right. A service manager will handle scheduling and parts. Mechanics, advisors, and a receptionist will support both the shop and the customers.

Vendor Contracts

The shop will use trusted vendors to keep work moving:

• NAPA & Advance Auto Parts for daily delivery of quality parts.
• Valvoline contract for oils and fluids at a bulk price.
• Safety-Kleen for waste oil pickup ($200/month).
• Mitchell1 Software, a kind of repair tracking system ($799/month).
• Hunter Engineering for lifts and alignment equipment.

Facility & Equipment

The shop will use a 4,800 sq. ft. building with repair bays, customer reception, and an auto parts room. Main equipment includes:

• Two rotary lifts
• Hunter alignment system
• OBD-II diagnostic scanners
• Storage for tires, fluids, and tools

Workflow System

Every repair will follow the same steps to keep service clear and fair:

1. Check-in: Customer details are logged.
2. Inspection: A quick check is done with photos.
3. Report: A digital report is sent to the customer.
4. Approval: Work starts only after customer approval.
5. Repair: Mechanics finish the job.
6. Delivery: Vehicle is tested and given back with a service record.

This diagram shows the simple steps each customer will go through.

Compliance & Safety

AccelCraft will follow all the rules for safe and legal operations:

• Texas Motor Vehicle Repair License.
• EPA rules for waste handling.
• Fire Marshal safety permit.
• OSHA safety practices for staff.

Key Strengths in Operations

The shop will run in two work shifts. This will keep service bays busy all day and reduce waiting time for customers. Parts will arrive quickly because of daily deliveries from suppliers. This will help the shop finish repairs faster without keeping extra stock.

All repairs will include digital reports and approvals. This makes the process clear and saves time for both staff and customers. The team will include bilingual staff, so it’s easier to serve more people in the community.

Waste oil and fluids will be recycled in safe ways. This protects the community and keeps the shop eco-friendly.

6. Milestones & Timeline

AccelCraft AutoCare will move step by step each month for setup, loan approval, lease, shop buildout, hiring, and launch. Each stage will keep the plan on track for a September 2026 opening and help it break even by mid-2027.

Key Milestones

7. Sales and Marketing Strategy

To grow fast and build trust, AccelCraft AutoCare will use online and local marketing. The budget will spread across many channels so the shop doesn’t depend on one. Meet local business owners, give fleet deals, and make fleet contracts.

Marketing Plan

The marketing budget will be divided across several channels, so the shop does not rely on just one source.

This chart shows how AccelCraft will divide its marketing budget across digital and local channels.

Sales Strategy

The process is clear and simple so customers feel at ease.

1. People find AccelCraft through ads, search, or word of mouth.
2. They can book online, by phone, or walk in any time.
3. Service advisors explain the job and share photo reports before starting.
4. Loyalty and seasonal offers keep customers coming back.

Sales Targets

The table below shows AccelCraft’s customer and revenue goals:

Customer Acquisition Strategy

The shop will use a mix of promotions and trust-building to bring in customers:

• Grand Opening Offer: $25 oil changes for the first 200 customers.
• Student Discount: 10% off repairs for SMU students with ID.
• Fleet Benefits: Lower hourly rate ($85/hr) plus 10% off on parts.
• Free Diagnostics: Free scan with any repair over $500.
• Referral Program: $25 credit for every new customer referred.

Positioning & Edge

AccelCraft will stand out from dealerships and small garages by offering:

• Dealership-quality work without dealership pricing.
• Digital health reports that prove repairs are real.
• Bilingual staff to connect with more customers.
• Eco-friendly practices that appeal to families and students.

Long-Term Marketing Focus

In the first year, most growth will come from ads and coupons. By Year 3, referrals, loyalty programs, and fleet contracts will bring most of the revenue. This lowers marketing costs and builds stronger customer relationships.

8. Management Team

AccelCraft AutoCare is owned and led by Ethan Blake. He is an ASE Master Certified Technician with over 14 years of real shop experience. Ethan worked for many years at Park Cities Ford Service Center in Dallas. There, he became known for honest work and quality repairs.

At AccelCraft, he will manage the shop and team and also handle complex repair jobs himself. His goal is simple — to build a place where people get clear answers, fair prices, and dependable service.

Service Manager

A full-time Service Manager will help keep the shop running each day. They will schedule jobs, manage parts, and make sure the mechanics have what they need. The manager will also watch over quality and help with customer questions when needed.

Service Advisors

Two Service Advisors will work directly with customers. They’ll welcome drivers, explain repair needs, prepare quotes, and send digital health reports. Their job is important because they make sure customers fully understand the work before it begins. This builds trust and helps bring customers back again.

Mechanics

AccelCraft will have four ASE-certified mechanics. Each mechanic will handle maintenance, diagnostics, and repairs for many types of vehicles. Their skills will make sure the shop provides reliable service every time — from oil changes to full transmission jobs. Ethan will guide the team and make sure everyone stays trained and updated.

Receptionist/Cashier

The Receptionist will take care of the front desk, phone calls, and payments. This role makes the first impression for customers and helps the check-in and check-out process go smoothly.

Support Network

Along with the team, AccelCraft will work with trusted partners. NAPA and Advance Auto Parts will supply parts quickly. Valvoline will provide oil and fluids, while Safety-Kleen will handle oil waste and recycling. The shop will use Mitchell1 software for digital records and Wells Fargo SBA as a financing partner.

Team Strength

This team combines strong repair skills, good communication, and solid management. Ethan’s leadership keeps the work accurate and consistent, while his staff and partners make sure everything runs smoothly each day.

9. Financial Plan

The financial plan shows how AccelCraft AutoCare will use its funds, manage costs, and grow over three years. The goal is to break even in the first year and grow with steady and fleet customers.

Startup Costs

AccelCraft AutoCare will need about $513,400 to start operations. This money will be used for the lease, shop setup, tools, and equipment. It will also cover inventory, marketing, insurance, and daily operating needs. Funds will come from a $480,000 SBA loan and $120,000 from the owner’s savings.

Break-Even Analysis

The shop must complete enough repair jobs each month to cover its fixed costs like rent, payroll, and utilities. This chart shows how many jobs per month are needed to cover fixed costs.

Revenue Projections

Revenue will grow as the shop builds its customer base and adds fleet contracts. This table shows projected revenue growth for the next 3 years as the customer base expands.

Profit and Loss Projections

Gross and net margins are based on standard auto repair shop averages. Parts have lower margins, but labor and diagnostics bring higher margins.

Cash Flow Forecast (Year 1)

Cash flow shows how money enters and leaves the business each quarter. This shows how cash flow will be managed in the first year.

Balance Sheet (End of Year 1)

The balance sheet shows assets vs. liabilities and equity. This table shows the financial position of AccelCraft at the end of Year 1.

Funding Request

The shop will be funded with owner equity and an SBA 7(a) loan. This table shows how AccelCraft will finance the startup and operations.

Together, this funding will cover about $600,000 in startup costs. It includes money for construction, equipment, tools, signage, rent deposit, marketing, insurance, and other setup needs.

All equipment and tools bought with the loan will be used as collateral. Ethan will also give a personal guarantee backed by his savings and assets.

This funding will help AccelCraft finish its setup, hire staff, buy inventory, and keep things running until cash flow becomes stable. The shop is expected to break even within the first year and grow its profits steadily after that.

Download a Free Auto Repair Shop Business Plan Template

Are you ready to kickstart your auto repair business plan writing? But need help with that? Well, look no further! Here’s our auto repair business plan template PDF to get started.

This investor-ready template has been crafted specifically for auto repair services. It comes with step-by-step instructions and practical examples to help you draft a solid plan that covers all the essential elements.

Conclusion

Now that you understand all the main parts of an auto repair shop business plan and how to organize them, creating your plan should feel easier and more manageable.

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