How To Start An Auto Body Repair Shop

How To Start A Body Shop – All You Need To Know Here On One Page

Body Shop Business Overview:

This type of business consists of repairing cars that have been in a collision and vehicles that need repainting, are rusted or need a full restoration.

Most of the time, you’re dealing with people who have had an accident. People who have had an accident are usually upset or shaken up.

One of your traits as a business owner is to have the ability and the patience to listen to all the stories. Listening to the stories builds strong customer relationships, which is a good opportunity for you.

One thing you could keep in mind with this type of business is, you must stay on schedule. If you promise you’ll have the vehicle finished in two weeks, then it’s important that you follow through on that promise, because people are depending on that vehicle.

Skill Set and Traits:

Attention to detail
Giving accurate estimates
Good measuring and part aligning skills
Metal fabrication
Metal straightening
Tearing down areas for repair
Installing new parts and aligning them
Sanding and body repair
Body preparation
Paint skills
Frame straightening
List of common business skills

Employee & Job Consideration During The Start-Up Phase or In The Future:

Auto body mechanic
Metal Fabricators
Painters
Common staff positions needed to run some businesses

Approximate Daily Hours Needed:

This a usually a nine to five business, although you’ll find yourself working overtime to get some jobs done on time when you are busy.

Equipment and supplies during the start-up phase or in the future:

Air compressor with sufficient storage and enough power to keep you with your needs
Air tools: air ratchet, air chisel, impact wrench, assorted air tools
Frame and body straighteners
Paint booth
Spray guns and filters
Dual-action sander
Slide hammer
Stud welder
Dolly set
A variety of clamps
Specialty hammer set for auto body repair
Suction cup dent pullers
MIG or TIG welders
Gas Torch
Metal shaping tools
Hoist — engine hoists
Transmission jack, jack stands, floor jacks
Diagnostic scanners
Fender covers
Air conditioning tools
Battery chargers/jump starters
Car dollies
Creepers
Headlight aimers
Gear pullers
Parts washers, pressure washers, parts handlers/stands, vacuums, floor fan
Sandblasters
Shop Presses
Bench grinders, work tables and benches, storage shelving and bins
Feeler gauges, assorted calipers, micrometers
Assorted wrenches
Assorted sockets set
A complete set of regular tools e.g., hacksaw, hammers, screwdrivers, pliers, vise grips, allen wrenches, chisels, measuring tapes, rulers, files, troubleshooting lights, extension cords, etc.
A wide variety of assorted specialty tools that you will purchase over time and as needed.

Monthly Expenses and Operating Costs To Consider:

In addition to our list of common business expenses, your bodyshop will require a budget for the ongoing cost of acquiring supplies, like paint, body filler, oxygen, acetylene, sandpaper grinding discs, drill bits, rivets, etc.

Licenses:

See Our Page on Licenses and Permits

Marketing Ideas:

Offer a loaner car for your customers, whether you make a deal with the car rental or you invest in some low-cost vehicles when your customer’s car is in the shop and they may need a loaner.
Offer free towing for customers who get their cars serviced at your shop.
Make a deal with local businesses — give them fliers or business cards and offer them a percentage of the repair for each referral they sent to you. On the card, offer the customer a discount on services
Approach local tow truck business owners and offer them a percentage or a referral fee for every customer they bring you.
Make a brochure for vehicle maintenance such as auto detailing. These types of packages are good for keeping the car looking like new and protecting it from rust. You may provide these services in addition to your auto body repair or you can contact local businesses and work out a deal where they refer your services and you refer their services.

Pros and Cons:

The Pros:

Can be a profitable business
Can gain repeat customers by doing great work at a reasonable price
Stable business model

The Cons:

Deadlines are hard to keep
Working with a lot of problems
Dirty work with a lot of dust, especially when sanding
Painting gives off toxic fumes
Most repairs are time-consuming
Season affects business — For example, cold, snowy winter will result in more collisions, compared to summer, which will have fewer collisions due to weather

Profitability and Revenue Considerations:

Profitability in the auto body repair business depends on a number of issues.

Here are a few:

Start-up costs — If you started off with buying a building, top-of-the-line equipment, and have a lot of employees then you will have high monthly loan payments and expenses, which will cut into your profits.
If you can’t give accurate estimates, you’ll lose money or lose customers.
You have to balance and make enough money to pay expenses and grow while giving your customers a good deal. You need to have a strong customer base in order to keep up with expenses and payments.
When times are slow, you need to work as if you are behind, because if you get bad weather conditions resulting streams of collisions you will be overwhelmed with business and may have to turn business away.

Start-up Cost Considerations:

Start-up costs depend on how you want to start your body shop.

If you purchase top-of-the-line equipment. If you purchase or lease a building that is very expensive and you hire a lot of staff, you will have a lot more start-up costs than if you were starting with the tools you have in your own garage. Therefore, determining start-up costs is difficult before planning on how you are going to start.

Full-Time or Part-Time Business: