Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. 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. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Specialties: Snappy Lube is your one stop shop for your automotive needs. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. We will attract and maintain a loyal customer base through our customer-oriented focus on business. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. Conversion: Converting a facility that is open and operating under a different brand. 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. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. A typical location performs about 1,200 jobs per month. Order Reprints. The income approach to business valuation determines the amount of income a business can expect to generate in the future. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. Contact us today! Every state has a different process when it comes to business licensing. A Sample Quick Lube Repair Business Plan Template Table of Content 1. However, youre fully capable of valuing your business using your own resources. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. In charge of creating marketing and sales strategies, etc. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. explaining everything in detail. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. 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. If YES, here is a sample Quick Lube business plan template & feasibility report. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. Make sure they know by having your license visible front-and-center. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Put your license proudly on display at your business. Full range of Auto Lubricants and Repair Parts store. SHOP STATS . Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. (Statista), #21. A well-run business will make transitioning ownership, without losing. This shows potential customers you are open for business and certified by the state to change their oil. 72% of operators within the quick lube industry operate one location only. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. (Digital Dealer), #19. 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. 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. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. Meredith has worked as a writer and editor for more than a decade. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. 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. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Small companies can compete successfully by owning favorable locations. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. We understand that starting a business like ours can be very expensive due to the high cost of equipment. At Easy On Oil, weve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. 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. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. We plan to give our clients a few business cards to hand out to friends when they talk about our quick lube services or buying new parts. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. Another 16% of business owners have two locations where they provide services. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. One Independent Quick Lube w/RE in East-Central South Dakota! Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. When evaluating offers, please review the financial institutions Terms and Conditions. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Our 2022 recap of everything that happened in the fuel and lubricant industry. 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. Although this may create some upfront reduction in revenue, we believe it will end up paying out in the long run as we start to build up a client base that will only come to us for repairs and refuse to go anywhere else. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Also our cash flow is impaired and business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.). San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. Job Roles and Responsibilities 6. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. text the finished report to the customer's mobile device. Also, our wide range of auto lubricants and repair parts inventory that is (nearly) never out of stock will further cement our place as a reckoning force in the 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. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. 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. Next, you'll need to outline your business plan and model. Among these, only a few are major national chains. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. So how do we make money? You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. The profitability of individual companies depends on convenient location and good marketing. Businesses in this industry are very important to the general automotive industry. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. : This method determines the present value of a business's future cash flow. 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. Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. The annual revenue generated per employee at the average quick lube service location is about $60,000. vendors, insurance agents, and others. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. (Car Wash Magazine), #7. They are responsible for the direct employment of almost 90,000 people. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. You have a loyal 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. So, most maintenance on electric cars will be more software driven. 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. At Easy On Oil, our mission is to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners in San Diego, California. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, How to Value a Small Business If Youre Looking to Sell or Buy. The two PEGs that own Express Oil LLC now have more than 700 stores. The service requires full cookie support in order to view this website. Cost of incorporating the Business $750. It's called Jiffy Lube Multicare. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Take 5 Oil Change is one of their fastest growing brands. Theres a different SDE multiple for every industry. Groups exist on the state and federal level to help with seed money. Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Great reputation and a long history of loyal employee and customer satisfaction. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. 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. This information may be different than what you see when you visit a financial institution, service provider or specific products site. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. Temple worked as a top sales rep at Chevrolet for over 13 years. Do not sell or share my personal information. 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. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. This does come at a cost though. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. 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. 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. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. KEYWORDS oil change Operations Quick Lube. Check out our Website for Services and Coupons! 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. 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. Please contact TransUnion directly expected to see lower levels of growth than the... 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