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One of the hottest solo entrepreneurial opportunities in the 2020s is the mobile mechanic. In periods when the economy is not so great and few consumers can afford to purchase new vehicles, many car owners choose to fix up the ones they have. But with traditional garages charging sky-high rates, solo or mobile mechanics are all the rage. If you have the skills to operate as a mobile mechanic or are willing to learn, launching this low-risk type of company can be a wise move during challenging times.
Besides having the right training under your belt, it’s essential to study the local market to learn about potential customers and competition. Apply for a small business loan to pay for all the related expenses, including the necessary equipment, tools, and education. Invest in marketing so you can start with several clients and build a network of satisfied customers. Don’t forget to keep meticulous accounting records to make tax season less of a hassle, and consider purchasing a work truck for business use only. Here are more details about how to launch your mobile mechanic company and make it a success.
Study the Local Market
Do your due diligence and market research. For mobile mechanics, those tasks entail studying the local competition in depth and researching demographics like age, car ownership rates, typical vehicle services requested, etc. In colder climates, you will need the capability for working in harsh conditions and performing small repairs in less-than-ideal environments. Spend time reading website pages of full-service local mechanics to see what their most popular services are and what they charge for routine repairs and small fixes. Knowing the local competitors and customer base is the best way to set your own prices and come up with a menu of services.
Borrow What You Need
Unless you’re sitting on a significantly large savings account and can afford to self-finance a mobile mechanic operation, consider applying for a loan to cover all the startup costs, including equipment, tools, a work truck, advertising campaigns, training, and accounting help. The good news is that AOF small business loans come in a wide range of sizes to fit the varying financial needs of borrowers. It’s also smart to utilize the lender’s educational resources and financial coaching so you can establish a solid credit profile and take advantage of bilingual support in both Spanish and English. Use your market research to help you calculate the right amount to borrow. Err on the higher side when setting a specific amount because it’s easy to underestimate expenses and initial costs.
Buy the Right Equipment
Make a detailed list of the equipment you will need. Then, do some online research to decide which items you can purchase and which ones you’ll need to lease. Most mobile mechanics own a basic outfit of jacks, computer diagnostic devices, lock picks, window repair kits, and more. However, pricier devices can be leased by the month or year. There’s no reason to sink a huge chunk of money into equipment you might not need on a regular basis.
Get the Proper Training
If you want to market yourself as a certified mechanic, find a nearby school that offers full-course license training. Use your business loan money to cover some or all of the costs, as the educational expenses are a direct expense of setting up your new company. You can still offer services to the public before earning certification. However, with the word certified on your business card and website, you can attract many more customers.
Keep Accurate Financial Records
Too many neglect this step and end up with major regrets. Even if you’re not a numbers person, download or buy a simple accounting app that can handle sole proprietor business record keeping. If you work from a company truck and make regular equipment and supply purchases, most of those expenses can come right off your profit calculation at tax time. Record keeping can be a minor hassle, but it pays for itself in the end. Always speak with a paid, professional accountant before filing. But keep in mind that you can save a lot on filing fees and accountants’ charges by maintaining a full-scale set of daily financial records of your business. Many CPAs (certified public accountants) have reasonable rates for small business clients who operate sole proprietorships.
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