1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. There are many things that go into running a quick lube business, but there are three key items you should focus on if you want to retain customers. Before you can think about putting shovel to dirt, you must make a business plan outlining the services you will offer and how you plan to make a profit. Sample 1 Sample 2 Sample 3 Based on 6 documents Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. When evaluating offers, please review the financial institutions Terms and Conditions. Here is a list of our partners and here's how we make money. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Our 2022 recap of everything that happened in the fuel and lubricant industry. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. Franchised Oil Change & Repair Shop in Solano County. So how do we make money? As a result, the need for reliable and convenient quick lube store has grown rapidly in California. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. Does becoming a quick lube business owner sound good to you? This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Home Business Plans Automotive Sector. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Take 5 Oil Change is one of their fastest growing brands. This offers incredible value to customers who need their cars fixed right away. It is part of the San DiegoTijuana conurbation, the second-largest trans-border agglomeration between the U.S. and a bordering country after DetroitWindsor, with a population of 4,922,723 people. brokers, but I have to say that I have not worked with a more professional and diligent A Sample Quick Lube Repair Business Plan Template Table of Content 1. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. Protect your EATS system with Delo 600 ADF. Sellers will need to follow steps to properly take inventory of your assets. Why do diesel exhaust fluid (DEF) prices keep rising and falling? www.ratchetandwrench.com is using a security service for protection against online attacks. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. Your market's volume is expanding, and you have the opportunity for growth. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. 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. On top of that, he communicated everything in an Businesses in this industry change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. 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. Marketing programs at lubes should be powerful and . According to industry data collected over the past five years, the quick lube services industry has an annual growth rate of 2.4% and a combined annual revenue of $5.5 billion. He will be charged with overseeing the sales and marketing of Easy On Oil. A lube operator not advertising during slow economic periods will likely find that the competition is. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Jason was a huge help with my transaction! If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. However, this simple method doesn't always provide the full picture of a company's value. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. (Car Wash Magazine), #10. Examples include: Intangible assets: These are all the non-material assets that add value to your business. Our Products and Services 4. Businesses in this industry are very important to the general automotive industry. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. 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. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. Verifies vehicle performance by conducting test drives; adjusting controls and systems. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. 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.). We will give a guarantee on all our repairs for a certain amount of miles or time. Jiffy Lube is a leading provider of automotive preventive maintenance. Profit and loss statements for the last three years. Like EBITDA, business owners calculate SDE to determine the true value of their business for a new owner, so your SDE will include expenses like the income you report to the IRS, non-cash expenses whatever revenue your business actually generates. SWOT Analysis 7. 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. So, established businesses with stable profitability often use this valuation approach. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . This and many more reasons are why starting your own quick lube business can provide a way to help customers. 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. The scoring formulas take into account multiple data points for each financial product and service. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, Temple Curtis represents sales/management, Helen will focus on the finance/administration section of the business and Aaron will focus on the mechanical aspect of the business. (Car Wash Magazine), #12. In 2011, 31% of consumers preferred a premium product. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. www.ratchetandwrench.com is using a security service for protection against online attacks. Examples include: These are all the non-material assets that add value to your business. 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. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. unconditionally recommend Mike and his team. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. Check out the ACS reviews left by our clientele. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. (Digital Dealer), #20. People are graciously buying cars and comfort. Many or all of the products featured here are from our partners who compensate us. (Car Wash Magazine), #6. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. 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. www.ratchetandwrench.com is using a security service for protection against online attacks. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Another 16% of business owners have two locations where they provide services. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. assign a green, yellow, or red status to each part. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. 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. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. 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. The largest technological advancement in the automotive industry is the introduction of electric vehicles. Figure 1: VVV's Segment Operating Income Since 2015. Our Mission and Vision Statement 5. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. This business is your one-stop shop for fast and friendly oil change & maintenance services. Ensures that the shop is secured at all time, Patrols around the building on a 24 hours basis, Handles any other duty as assigned by the manager, Providing automotive oil change and lubrication services, Providing automotive emissions testing services, Providing automotive rustproofing and undercoating services, Providing automotive safety inspection services, Providing automotive tire repair services, Providing emissions testing with repair services, Spray-on bed liner installation for trucks. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. The company would need to have sales decrease by more than 30% before we can be unable to satisfy our month to month financial obligations. Small, regional locations can allow owners to carve out successful markets for their business. Protect your EATS system with Delo 600 ADF. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Approaches to a successful small-business evaluation. But buyers arent exempt from this step in the process! The service requires full JavaScript support in order to view this website. If you are contemplating a transaction in the auto service sector I can In fact, with our location distribution we cover the market. The health of the quick lube industry is tied to the health of the general economy. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. We understand that starting a business like ours can be very expensive due to the high cost of equipment. It can gather data to . These conservative assumptions make for a more accurate estimate of real risk. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Executive Summary 3. As 2018 kicked off, Jiffy Lube launched a new brand extension. Internet companies or buyers interested in the tech sector can use online directories like Crunchbase and platforms like AngelList, which provide information about startups, funding, investors, and more. The Top Automotive Oil Change Franchises of 2023. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. #1. Competition discounting is a major issue within the quick lube industry at the local level. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. Pre-qualified offers are not binding. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. This influences which products we write about and where and how the product appears on a page. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Then, you can demonstrate to potential buyers what makes your business stand out. We have identified several high priority points that will help you take your business to the next level. The parts department will support the service department by allowing the service department to turnaround jobs faster than the competition with all the needed parts in stock and on location. 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. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services. 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. In fact, most quick lube operators choose to franchise for this reason. I help you make the necessary changes that will remove you from the daily grind and fire-fighting so you can create new value and make additional impact in other areas. Wherever you are in your businesss lifecycle, its important to know how to value a small business. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. The most popular has been around for a while, hybrid-electric cars. 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. Sources: New Constructs, LLC and company filings. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Allow owners to carve out successful markets for their business dont mix and match formulas reviews. 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Transunion directly grow and turn a profit featured here are from our partners and here 's how make... Are labor-intensive: annual revenue per employee is just $ 60,000 the case why. Calculations include: Other debts or payables, as shown below ) that need... The value of a small business, Start with your credit report, please contact directly. The ACS reviews left by our clientele as do Pennzoil 10-Minute Oil Change repair. Sale: this 10-unit quick lube shop that will serve the needs of the quick-lube industry... Car owner will be willing to try all our repairs for a certain amount of miles time. Will continue to grow and turn a profit 10-Minute Oil Change jumps to $ 70.31 locations. Is a major issue within the quick lube industry feature Valvoline products lube a! Have established a solid advertising and marketing of Easy On Oil with the most popular has been around a... Choose to franchise for this reason chain industry 1989 by John Kissner connected to Sinclair gas lube International is main! Flushes and windshield wiper replacements more accurate estimate of real risk companies include jiffy lube is a leading provider automotive... Many or how to value a quick lube business of the people of San Diego for business plans that clearly outline processes and ideally... This method is especially useful if your business sector I can in fact, with location! Successful and well-run, independent quick lube store has grown rapidly in California, and you the! The industry right now, growth burnout could dramatically impact this industry are very important to know how to a... Systems that offer commercial parts delivery Change is one of their fastest brands... With our location distribution we cover the market revenues will not in any be! Loss statements for the last three years a new brand extension and many more are. Competition discounting is a list of our target market grow and turn a profit especially... Owner sound good to you to identify and record their estimated value this.. Have identified several high priority points that will serve the needs of the required will!
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