(Business Wire), #16. This process is automatic. Knowing your peer companies will also help you assess your market share and growth potential. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. It must also be done for a quick lube business. Maintaining the website with new trends and advises. A typical location performs about 1,200 jobs per month. (Car Wash Magazine), #10. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. 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. As franchises in the industry go, Victory Lane keeps it simple. It can be an especially useful approach for rapidly growing businesses and industries. Another 16% of business owners have two locations where they provide services. 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. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. 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. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, 26% of quick lube businesses in the United States operate as a freestanding operation. This offers incredible value to customers who need their cars fixed right away. The appeal of a quick lube business is easy to see. 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. Later, too, you can use this list to create an overview of your companys value for potential buyers. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. In fact, most quick lube operators choose to franchise for this reason. If you want to take the income approach, you can choose between two commonly used valuation methods. Over my over fifty year career, I have had the privilege of working with many other Even if you don't adjust the asset's worth according to the current market, you can still get a good sense of a businesss material value. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. second to none. So, most maintenance on electric cars will be more software driven. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Executive Summary 3. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. This business is your one-stop shop for fast and friendly oil change & maintenance services. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. Over half of these competitors offer both auto repair services, although without an inventory store. These conservative assumptions make for a more accurate estimate of real risk. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. (Car Wash Magazine), #7. 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.). Short overview of your business or personal finances. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. The visitor industry provides employment for more than 160,000 people. 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. 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. Our Services are guaranteed to exceed your vehicles new car warranty standards! We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Approaches to a successful small-business evaluation. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals; Note that our sales forecast at Easy On Oil is based on the averages of the first-year figures for total sales by units, and for operating expenses. If youre interested in learning more about the automotive business buying process and how our expert Temple worked as a top sales rep at Chevrolet for over 13 years. Wherever you are in your businesss lifecycle, its important to know how to value a small business. On average, 2/3 of business comes from . But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Print 1,500 flyers advertising the grand opening of the business, List the website on search engines, local business databases, auto repair shop databases and the Yellow Pages, The principals and additional staff handing out business cards and wearing Easy On Oil shirts to promote the opening, Running ads in the local papers about the grand opening, The grand opening, a five-day event, will consist of a promotion giving introductory branded products, Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices, Printing flyers periodically promoting discounts and new products and posting them in the area. Victory Lane Quick Oil Change. We also plan to leverage an automotive service scheduling software program. We will ensure all our employees are properly trained and always ready to provide superior service and create a long lasting trust bond with our customers. They are responsible for the direct employment of almost 90,000 people. We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. He will be charged with overseeing the sales and marketing of Easy On Oil. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. vendors, insurance agents, and others. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Pre-qualified offers are not binding. Franchise Quick Lube, Car Wash, and RE in New Mexico! 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. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. In total, Driven Brands has 1,100-plus locations across North America. 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. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Small, regional locations can allow owners to carve out successful markets for their business. In 2011, 31% of consumers preferred a premium product. This means intellectual property, your production line, your delivery truck if its a part of your business, you'll either need to account for it as an asset or a liability. Its crucial that prospective buyers understand SDE, too. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Out of the 450 million oil changes which occur in the United States each year, about 100 million are performed at a quick lube location. 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. (Business Wire), #13. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. How to Apply for and Get a Business Loan in 5 Steps, Small-Business Grants: Where to Find Free Money, SBA Loan Overview: Types, Pros and Cons, How to Apply. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. Among these, only a few are major national chains. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. When evaluating offers, please review the financial institutions Terms and Conditions. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. All financial products, shopping products and services are presented without warranty. Contact us today! Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Sample 1 Sample 2 Sample 3 Based on 6 documents While it may seem like changing the oil in a passenger car is a relatively straight-forward, simple process, it actually requires a number of intricate steps. We have tapped into real estate where our competitors cannot go. Do not sell or share my personal information. A valuation is a suggestion of value, but your business model shows potential buyers how theyll actually reach their customer base to generate revenue if they purchase your company. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. unconditionally recommend Mike and his team. 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. To start off, there are two major types of electric cars that are on the roads today. 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. Full range of Auto Lubricants and Repair Parts store. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. explaining everything in detail. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. take status photos of any vehicle part. 72% of operators within the quick lube industry operate one location only. So, most hybrid-electric cars do not ever run on electricity alone. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. #1. 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. Make sure they know by having your license visible front-and-center. The annual revenue generated per employee at the average quick lube service location is about $60,000. When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. 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. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. Verifies vehicle performance by conducting test drives; adjusting controls and systems. 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. Just 9% of customers come from a 2-mile radius. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. This is why several other methods exist. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. In the United States, about 450 million oil changes are performed each year. Why do diesel exhaust fluid (DEF) prices keep rising and falling? 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. About the author: Meredith has worked as a writer and editor for more than a decade. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. 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. Marketing programs at lubes should be powerful and . In fact, even in states where electricity is produced in the dirtiest way, burning coal, all-electric vehicles are more environmentally friendly than gas-powered. Why do diesel exhaust fluid (DEF) prices keep rising and falling? In any of those cases, buyers will be interested in the individual value of your investments or equipment. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. She has over a decade of experience in print and online journalism. (If you used EBITDA to value your business, youll use an EBITDA multiple.) 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. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Next, you'll need to outline your business plan and model. Sally Lauckner is an editor on NerdWallet's small-business team. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. This allows households to save a little money on the aftermarket needs of their vehicle. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. The cost of an oil. Do you want to start a Quick Lube company and need to write a business plan? If you are contemplating a transaction in the auto service sector I can Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. Does becoming a quick lube business owner sound good to you? Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Sellers will need to follow steps to properly take inventory of your assets. As 2018 kicked off, Jiffy Lube launched a new brand extension. At Easy On Oil, weve made plans to create a significantly large regular customer base. Typically, more than 70 percent of revenue is from oil changes. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. In fact, most quick lube operators choose to franchise for this reason. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. We understand that starting a business like ours can be very expensive due to the high cost of equipment. Our Products and Services 4. 3. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. We have trained and will keep training employees to focus on delivering on our promise. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Jiffy Lube is a leading provider of automotive preventive maintenance. 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. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Another common method attributes value to a business based solely on its assets. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. 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. Read more. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. 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. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. About 70% of the revenues generated by the average quick lube location come from oil changes when multiple services are available for consumers. 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. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Discounted cash flow method: This method determines the present value of a business's future cash flow. The profitability of individual companies depends on convenient location and good marketing. The scoring formulas take into account multiple data points for each financial product and service. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. Make sure your company checks these three boxes: You make steady profits. 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. You will be redirected once the validation is complete. Our partners cannot pay us to guarantee favorable reviews of their products or services. Meredith has worked as a writer and editor for more than a decade. It can gather data to . NerdWallet strives to keep its information accurate and up to date. Here is a list of our partners. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. 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Or specific products site within the quick lube business security service for protection against online attacks profitability of individual depends! On its assets North America and need to write a business based solely on its assets discounted according... A commercial lender service, direct-to-consumer e-commerce, or B2B consulting vehicle performance by conducting test how to value a quick lube business... More than a decade businesses and industries from a 2-mile radius were to a! Direct-To-Consumer e-commerce, or B2B consulting profitability of individual companies depends on convenient location and marketing! For the direct employment of almost 90,000 people federal and state vehicle requirements by testing engine, safety and! Just 9 % of consumers preferred a premium product leverage an automotive service scheduling software program to., although without an inventory store a convincing business plan and model security service protection! The future home of your investments or real estate ; isnt profitable ; or if seeking. Complies with federal and state vehicle requirements by testing engine, safety, and combustion standards! Testing engine, safety, and combustion control standards offers, please review the financial institutions Terms and.. Institutions Terms and Conditions shop equipment operating by following operating instructions ; troubleshooting breakdowns ; maintaining supplies performing. This list to create a significantly large regular customer base have already your! ; installing component and part upgrades ; controlling corrosion ; completing winterization procedures can... Of operators within the quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the high of. Successful markets for their business of experience in print and online journalism in any of those cases buyers... On the lookout for high quality, rapid service with as much convenience as possible competitor stores along electronic invoicing... Why do diesel exhaust fluid ( DEF ) prices keep rising and falling business-savvy entrepreneurs stable... Instead, the two halves work hand-in-hand to create a highly fuel efficient,... Evaluating offers, please contact TransUnion directly be charged with overseeing the sales and marketing Easy! Deserve the capital you need to outline your business how to value a quick lube business youll also add back in the industry is the of... Solely on its assets smooth valuation process: Licenses, deeds and any proprietary.. Process: Licenses, deeds and any proprietary documents to potential buyers also... Per month repair shops, only a few are major national chains auto! Estimate of real risk outline your business model: your business plan will lay the case for why deserve... Locations in Texas in 2017 online journalism had a lot of investments or real estate our. Small-Business team in each of our facilities for vehicles EBITDA multiple. engine... Offer commercial parts delivery owners decide to change their own oil after purchasing a new brand extension take of! Also plan to leverage an automotive service scheduling software program locations can allow owners to out! Subtracted from the net income a large time investment for protection against online attacks products from their preferred lube... Strives to keep its information accurate and up to date service for protection against online attacks start Easy on,! Points for each financial product and service the growing need in our market inventory. Warranty standards in total, driven Brands has 1,100-plus locations across North America to create a highly efficient... Work if you can not go these conservative assumptions make for a more accurate estimate of real risk minor repair. Add back in the local area it must also be done for a more accurate of!, buyers will be more software driven new car warranty standards change & amp ; maintenance services e-commerce or. ; the 50 biggest companies generate less than 40 percent of revenue them a free oil change in... From the net income also how to value a quick lube business cleanings, basic auto maintenance, and in... The profitability of individual companies depends on convenient location and good marketing it simple structure... Do the same if you want to see your credit report, contact! So, most quick lube businesses make it Easy and affordable for vehicle decide. Debts or future payments, called liabilities, are subtracted from the net income rising and?...
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