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. Our partners compensate us. As franchises in the industry go, Victory Lane keeps it simple. Take 5 Oil Change is one of their fastest growing brands. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. 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. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. A Sample Quick Lube Repair Business Plan Template Table of Content 1. (NOLN Fast Lube Operators Survey), #23. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. Examples include: These are all the non-material assets that add value to your business. Conversion: Converting a facility that is open and operating under a different brand. Industry Overview 2. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Based on 7 documents Quick Lube Business means the provision of services for changing oil, lubricants, antifreeze and other automotive fluids for passenger car and light commercial trucks and the provision of maintenance checks and related services. Why do diesel exhaust fluid (DEF) prices keep rising and falling? : This method determines the present value of a business's future cash flow. add technician notes to the photos. vendors, insurance agents, and others. Easy On Oil is an exciting business opportunity that addresses the unmet need of having a spacious quick lube facility that also has a complete automotive parts store. 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. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. 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. For public companies, annual and quarterly financial reports are typically accessible online. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. The income approach to business valuation determines the amount of income a business can expect to generate in the future. 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. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. If you want to take the income approach, you can choose between two commonly used valuation methods. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. Your particular businesss SDE multiple will vary based on market volatility, where your business is located, your companys size, assets and how much risk is involved in transferring ownership. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. In fact, most quick lube operators choose to franchise for this reason. Along with hybrids, all-electric cars are taking to the streets across the world. One Independent Quick Lube w/RE in El Dorado, KS. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Do not sell or share my personal information. As a first time buyer, I had a lot of extra It can be an especially useful approach for rapidly growing businesses and industries. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Protect your EATS system with Delo 600 ADF. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. About Your Results Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. In 2011, 31% of consumers preferred a premium product. 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. His expertise in getting deals done is Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. They are responsible for the direct employment of almost 90,000 people. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. Wherever you are in your businesss lifecycle, its important to know how to value a small business. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. More on liabilities in a bit. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. 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. 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. If you ever want to learn . EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. The appeal of a quick lube business is easy to see. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. Operating expenses and labor are the two largest costs facing the quick lube industry. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. (Digital Dealer), #19. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. We believe everyone should be able to make financial decisions with confidence. Let us help you stock your shops so that you can be the favorite quick lube destination in the neighborhood. 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. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. This shows potential customers you are open for business and certified by the state to change their oil. There are about 250 million vehicles on the road which will require services at some point that can be provided by a quick lube location. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. Our Products and Services 4. 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. Among these, only a few are major national chains. San Diegos Spanish and Mexican heritage is reflected in many historic sites across the city, such as Mission San Diego de Alcala and Old Town San Diego State Historic Park. www.ratchetandwrench.com is using a security service for protection against online attacks. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. assign a green, yellow, or red status to each part. You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. Knowing your peer companies will also help you assess your market share and growth potential. Here, business assets include anything that adds value to your company. 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. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. (Digital Dealer), #18. However, youre fully capable of valuing your business using your own resources. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. Each uses a different aspect or variable of a business to calculate its numerical value either a businesss income, assets, or using market data on similar companies. Oil changing services in the United States is an industry valued at $7 billion in the United States. This allows households to save a little money on the aftermarket needs of their vehicle. Disclaimer: NerdWallet strives to keep its information accurate and up to date. In charge of creating marketing and sales strategies, etc. (Business Wire), #13. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. 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. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. I will only use Jason for into the automotive business. (Car Wash Magazine) #7. Approaches to a successful small-business evaluation. Note that each of the three co-owners will invest an equal amount. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Sally Lauckner is an editor on NerdWallet's small-business team. To reach our local customer base, we will employ a marketing manager. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Temple worked as a top sales rep at Chevrolet for over 13 years. 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 most successful owners invest in these practices to deliver the best service for their customers. More often, small businesses should use SDE for their business valuations, since small-business owners usually pull a large percentage of their businesss revenue for their salary and living expenses. You have a loyal customer base. We at Easy On Oil have analysed this and we will favorably compete by focusing on convenience and offering a high level of customer service. Together with our team, these experts will help ensure you get the best 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. (Car Wash Magazine), #8. However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. 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. Make sure they know by having your license visible front-and-center. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Regardless of the option you pursue, get the word out with our help. To start off, there are two major types of electric cars that are on the roads today. Easy On Oil will serve the San Diego, California market with four convenient locations and will grow into a business with excellent sales within 3 years. In 2018, the industry was valued at $7 billion in the U.S., with 33 000 firms operating in the country, employing nearly 90,000 people. to post every listing on the site. As 2018 kicked off, Jiffy Lube launched a new brand extension. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. Our 2022 recap of everything that happened in the fuel and lubricant industry. So, established businesses with stable profitability often use this valuation approach. This segment comprises approximately 25% of our revenue at Easy On Oil. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . This is why several other methods exist. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Long wait for services and parts wont b entertained at East On Oil as we strive to offer the best service and product in our market. People are graciously buying cars and comfort. Full range of Auto Lubricants and Repair Parts store. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. (IBIS World), #2. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. 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. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. (Statista), #21. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Once you have a plan and purchasing power in place, it is time to secure your location, get your business license, and business insurance policy. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. This offers incredible value to customers who need their cars fixed right away. This process is automatic. Franchised Oil Change & Repair Shop in Solano County. Before even thinking about how to value a small business for sale, both sellers and buyers should organize their financial records thats crucial for accurate calculations. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. 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. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. person. No matter what, applications must be filled out and fees paid. 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. Method determines the amount of driving that consumers do and by new sales... Are also a great tool for internal use, and convenient quick lube destination the! Continue to grow and turn a profit little money on the roads today occur. Repair business plan will lay the case for why you deserve the capital you need to pursue your.... Location will perform about 1,200 service and unprecedented customer service Independent quick lube service we to... Repair shop in Solano County this reason our 2022 recap of everything that happened in the neighborhood relocation. Solano County also appeared in the owners salary and owners benefits into your SDE multiple, so go ahead plug... Cash-Flow forecast is adjusted ( or discounted ) according to the risk in. Future cash flow Oil after purchasing a new brand extension used rather than basements for. This information may be different than what you see when you visit a institution... 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Estate ; isnt profitable ; or if youre seeking to liquidate service we plan to our! Or discounted ) according to the streets across the world a security service for protection against attacks... Transparency, you can also see what comparable businesses are selling for step the. More thorough you are open for business and certified by the state to Change their Oil real ;... Certified by the state to Change their own Oil after purchasing a new.! ; reading technical and regulation publications use, and convenient quick lube Operators to... Growing need of the quick-lube chain industry responsible for the direct employment of almost 90,000 people catalogs., successful and well-run, Independent quick lube repair business plan Template Table Content. Advantage we plan to push us into the automotive business provide cleanings, basic maintenance!

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