Auto Repair Businesses

The auto repair business can be very competitive, and it’s not the most welcoming to newcomers. Still, many manage to strive in this industry by being creative, proactive, and resourceful. In many cases, however, new owners may end up facing challenges they weren’t prepared for, and might not know where to turn. If that’s your case, you should know that others have been down the same road, and were able to get out.

Here are some of the biggest challenges new auto repair shops have to face, and how to address them.

Auto Repair Shops


Image Source by : pixabay

Cash Flow Issues

This is one of the most common issues you’ll have to deal with as an auto repair businesses shop. You might have to deal with pending payments, but still have to perform repairs out of pocket, which can be difficult to handle. In other cases, you might have to make a major equipment purchase but are afraid that you won’t have enough cash on hand to finance it.

If you’re strapped for cash and are looking for solutions, we strongly suggest you check out these 3 ways to secure financing. Lines of credit and invoice factoring could be perfect options for your situation, and allow you to make major purchases while giving you extra room to breathe.

Marketing Issues

If you’re just getting started, you’ll soon realize how tough it can be to market a business in this crowded space. After a while, all repair shops can look the same, and it can be hard to stand out.

Image Source by : pixabay

One option you should consider is joining a franchise. Some will make it easier than others to join, but you also have to check the level of support you’ll get. The other option would be to try to form strategic partnerships. For instance, some people decide to give discounts to people in the delivery business, or taxis for instance. This could be a great way to build word of mouth publicity, even if you perform jobs at a loss.

Another option would be to offer other services and use them to promote your garage. A common choice would be to open a car wash. These could be a great way to gain visibility, and you could offer special offers to your car wash clients. Maybe even offer a free service to sweeten the deal and show your expertise.

Challenges Facing Budding

Image Source : pixabay

Finding Labor

This is another tough challenge to deal with. The truth is that there is a limited number of graduates getting out of school every year, and they’re in great demand. The solution here could be to work with vocational schools around your area and offer apprenticeships.

Do not see these apprentices as liabilities either, as they’ll often be very well versed in recent technologies. While they might not have the working experience, they could help update some of your older mechanics on the newest trends and help them build their knowledge base.

These are only some of the common challenges that you may have to face in the auto repair businesses. If you manage to follow our advice, you’ll be more prepared to face them, and be better equipped to survive in this tough business.

Featured Image by : pixabay


Leave A Reply