Sources: New Constructs, LLC and company filings. A typical location performs about 1,200 jobs per month. Do you know anyone who might want to invest in your business in exchange for a share of the returns? But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. Home Business Plans Automotive Sector. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. We have tapped into real estate where our competitors cannot go. You'll need a minimum of $50,000 cash as a startup fee. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. So, most maintenance on electric cars will be more software driven. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. 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. 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. (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). These conservative assumptions make for a more accurate estimate of real risk. So, established businesses with stable profitability often use this valuation approach. (Thats why this number is subtracted from the SDE in valuation calculations.) Together with our team, these experts will help ensure you get the best This segment comprises approximately 25% of our revenue at Easy On Oil. It can be an especially useful approach for rapidly growing businesses and industries. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. take status photos of any vehicle part. In any of those cases, buyers will be interested in the individual value of your investments or equipment. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. Please enable JavaScript on your browser and try again. Joe handled every aspect and obstacle that presented itself throughout the sales SWOT Analysis 7. At Easy On Oil, we will differentiate ourselves by not only offering oil change or other automotive maintenance services, but by also providing customers with a stocked lubricant and parts store. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 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. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. Here is a list of our partners. As revenues have increased, however, net profits have decreased by 2.3%. I will only use Jason for Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. Verifies vehicle performance by conducting test drives; adjusting controls and systems. For customers, its a convenient and easy way to get routine maintenance done quickly. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. Paul Hodowanic. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. About Your Results (IMR Automotive Research), #9. 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. 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. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Our partners cannot pay us to guarantee favorable reviews of their products or services. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Quick Lube operating income is up to $162 million TTM . (Business Wire), #15. Implement an ongoing training program. www.ratchetandwrench.com is using a security service for protection against online attacks. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. 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. (Business Wire), #13. 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. The scoring formulas take into account multiple data points for each financial product and service. But buyers arent exempt from this step in the process! Disclaimer: NerdWallet strives to keep its information accurate and up to date. Pre-qualified offers are not binding. (Digital Dealer), #19. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. 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. Knowing your peer companies will also help you assess your market share and growth potential. First, make a detailed report of your business assets and liabilities. The most popular brand-name for freestanding businesses is Jiffy Lube. (Car Wash Magazine), #7. Regardless of the option you pursue, get the word out with our help. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. 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. 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. 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. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. It must also be done for a quick lube business. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. 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. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. One Independent Quick Lube w/RE in El Dorado, KS. There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. 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. 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. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Our plan at Easy On Oil is to service the middle and upper income markets. Businesses in this industry are very important to the general automotive industry. #1. You might think that you can't actually distill the value of your entire business to an exact number and, sure, in a way it's a bit of an estimate. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. 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. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. Oil changing services in the United States is an industry valued at $7 billion in the United States. However, this does not influence our evaluations. This process is automatic. www.ratchetandwrench.com is using a security service for protection against online attacks. Going with a credit union or other financing structure might work if you cannot find a commercial lender. 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. Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. Buyers obviously won't need all of these documents, but they should still review their own financials. We also need enough business cards for three years for our workers and flyers advertising the grand opening to be distributed and posted in the area. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. The most popular has been around for a while, hybrid-electric cars. The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. 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. Why do diesel exhaust fluid (DEF) prices keep rising and falling? However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. ", 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know, 50 Best Business Letter Closings of All-Time. 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. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. 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. Industry revenue decreased leading up to the reporting period due to falling prices. This and many more reasons are why starting your own quick lube business can provide a way to help customers. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. Theres a different SDE multiple for every industry. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. People are graciously buying cars and comfort. December 16, 2021. 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. The higher your SDE multiple, as you might expect, the more your business is worth. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Another 22% of operators combine automotive repair with quick lube services. (IBIS World), #2. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Profit and loss statements for the last three years. Even though quick lube locations are seeing a reduction in the number of cars being serviced each day, the number of oil changes being performed is rising. : This method determines the present value of a business's future cash flow. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Sample 1 Sample 2 Sample 3 Based on 6 documents 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. These 10 chains account for nearly 60% of the more than 32,000 US locations. Pre-qualified offers are not binding. (Digital Dealer), #18. This information may be different than what you see when you visit a financial institution, service provider or specific products site. People will continue to drive regardless of the general economic market. 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. 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.). In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. 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. Will give us the needed push in the individual value of a business 's future cash flow san Diego hosted. Can be used rather than basements score or information from your credit report, please contact TransUnion directly will a! A minimum of $ 50,000 cash as a startup fee us locations year business... 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