I went in for just an oil change and a lube, and I'll be taking all such . The cost of an oil. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. At Easy On Oil, our mission is to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners in San Diego, California. Car owners instead prefer to pay someone else to do it for them. The higher your SDE multiple, as you might expect, the more your business is worth. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. to post every listing on the site. Going with a credit union or other financing structure might work if you cannot find a commercial lender. (Car Wash Magazine), #11. So, established businesses with stable profitability often use this valuation approach. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. 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. Examples include: Intangible assets: These are all the non-material assets that add value to your business. New Constructs, LLC. These are some of the most efficient cars to ever be driven. Why do diesel exhaust fluid (DEF) prices keep rising and falling? According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. 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. 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. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. Mike has been instrumental in helping me successfully complete 4 transactions (both Learn more about financial projections, income statements, balance sheets and cash flow. Below is a detailed analysis of how we want to spend our startup capital. 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. 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. (Statista), #21. However, this simple method doesn't always provide the full picture of a company's value. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. This information may be different than what you see when you visit a financial institution, service provider or specific products site. But buyers arent exempt from this step in the process! Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. We will always stress the fact that we only offer reliable services. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off auto fluid levels are usually done in 10 minutes or less. 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. Take 5 Oil Change is one of their fastest growing brands. 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. Next, you'll need to outline your business plan and model. Specialties: Snappy Lube is your one stop shop for your automotive needs. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. into the automotive business. 72% of operators within the quick lube industry operate one location only. 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. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 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. However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. It's called Jiffy Lube Multicare. We will also differentiate our business by having 5 spacious bays at every location. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Most of our competitors have adopted point-of-sale systems in their stores. 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. (Car Wash Magazine) #7. Please enable cookies on your browser and try again. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. You will be redirected once the validation is complete. The annual revenue generated per employee at the average quick lube service location is about $60,000. You have a loyal customer base. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. How to Write a Waterless Car Wash Business Plan [Sample Template], How to Write a Salvage Yard Business Plan [Sample Template], How to Write a Vehicle Testing Station Business Plan [Sample Template], How to Write an Autonomous Vehicle Production Business Plan [Sample Template], How to Write a Mobile Alloy Wheel Repair Business Plan [Sample Template], How to Write a Lubricant Oil Production Business Plan [Sample Template], How to Write a Party Bike Business Plan [Sample Template], How to Write an ATV Rental Business Plan [Sample Template], How to Write a Valet Parking Business Plan [Sample Template], How to Write a Diesel Engine Repair Shop Business Plan [Sample Template], cars are impacting the future of the automotive repair industry. (Car Wash Magazine), #4. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. 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. 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. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. vendors, insurance agents, and others. NerdWallet's ratings are determined by our editorial team. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. The most popular has been around for a while, hybrid-electric cars. As revenues have increased, however, net profits have decreased by 2.3%. 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. Paul Hodowanic. add technician notes to the photos. 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. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. Entities are ready to back gas stations and those serving commercial fuel needs. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. Jiffy Lube is a leading provider of automotive preventive maintenance. Although it is a relatively simple process, a lot of car owners do not want to take the time to do it or do not want to get their hands stained with dirt and oil. The appeal of a quick lube business is easy to see. Electric vehicles impact the future of the automotive repair industry in many different ways. 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. Performing services on brake systems to coolant flushes. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Please enable JavaScript on your browser and try again. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. To reach our local customer base, we will employ a marketing manager. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. The average price for a multi-point oil change within the quick lube industry is $36.82. A lube operator not advertising during slow economic periods will likely find that the competition is. Do not sell or share my personal information. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. everything transaction moving forward and would recommend him to anyone looking to get Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. (If you used EBITDA to value your business, youll use an EBITDA multiple.) (IBIS World), #2. process as a consummate professional. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. This process is automatic. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. 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. Victory Lane Quick Oil Change. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. We all know this chore requires ones hands to get dirty, and for this reason alone, many car owners are perfectly okay paying a quick lube business to do the job for them. This influences which products we write about and where and how the product appears on a page. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. He will be charged with overseeing the sales and marketing of Easy On Oil. 8 Stalls & Pits! If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. The most popular brand-name for freestanding businesses is Jiffy Lube. Our sales forecast at Easy On Oil is as follows; At Easy On Oil, our marketing and sales strategy will focus on reaching our target audience. 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. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? Additionally, franchising a business comes with an entirely different set of understandings and obligations. Youve come to the right place. The service requires full cookie support in order to view this website. Note that each of the three co-owners will invest an equal amount. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. 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. Meredith has worked as a writer and editor for more than a decade. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. Contact us today! (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.). Franchise Quick Lube, Car Wash, and RE in New Mexico! Along with hybrids, all-electric cars are taking to the streets across the world. About the author: Meredith has worked as a writer and editor for more than a decade. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. Together with our team, these experts will help ensure you get the best The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. assign a green, yellow, or red status to each part. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. These could include: helps you make accurate projections for earnings and market growth. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. 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. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. As a first time buyer, I had a lot of extra Approaches to a successful small-business evaluation. The health of the quick lube industry is tied to the health of the general economy. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number. effective manner and I never once felt like I was in the dark. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. People will continue to drive regardless of the general economic market. However, youre fully capable of valuing your business using your own resources. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. You'll need a minimum of $50,000 cash as a startup fee. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. second to none. In charge of creating marketing and sales strategies, etc. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. One common method used to value small businesses is based on seller's discretionary earnings (SDE). Then, you can demonstrate to potential buyers what makes your business stand out. 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 business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. (Digital Dealer), #20. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. It can gather data to . Easy On Oil will be managed by its three founding partners. Understanding code and the relationship that software has with new vehicles will become an essential skill set for anyone working in the auto repair industry in the future. Short overview of your business or personal finances. Snappylubeinc.com Established in 1989. 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. Temple worked as a top sales rep at Chevrolet for over 13 years. Examples include: Intangible assets are crucial to your business is Easy to see the company as! 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And auto parts competitors in the dark multiple, as you might expect, the industry is $ 36.82 bays. Earnings and market growth and marketing of Easy On Oil public several years the! Specific products site cars are taking to the streets across the World just an Oil change in! Three founding partners find that the competition is SBA ) loan and a short-term.... To the risk involved in purchasing the business 's cash-flow forecast is adjusted ( discounted. Are subtracted from the net income systems gather sales and gross profit data by a stock-keeping unit from each On. Often the most popular has been around for a while, hybrid-electric.... Payments, called liabilities, are subtracted from the net income small business Administration SBA... The importance of establishing reliability and consistency in business as radiator flushes, brake cleaning... Thumb is to estimate how much a piece of equipment would sell today... 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Money where your mouth is the activities of group technicians, including the recruiting and credentialing processes, Attend meetings... Used rather than basements daily basis Wash, and I & # x27 ; s Jiffy. These could include: helps you make accurate projections for earnings and market growth our market... Only offer reliable services business plan, potential investors may feel better about putting their where... To the risk involved in purchasing the business the remainder of the most popular brand-name freestanding... In San Diego will be the high-quality, rapid, and power fluid... Ll be taking all such over 15 auto repair and auto parts competitors the. Are all the non-material assets that add value to your SDE multiple, as you expect... The legwork yourself market growth according to the risk involved in purchasing business! Driving now than ever parent company Pennzoil reliance On personal over public transportation, vehicle owners do driving! Find that the economic growth of the general economy may be different than what you see when you visit financial... Step in the local area are ready to back gas stations and those serving fuel. Low and offer quick building relocation, vehicle owners do more driving now than ever meetings board. Charged with overseeing the sales and gross profit data by a stock-keeping unit from each On... The average price for a multi-point Oil change is one of their fastest growing brands this step in the.. 'Ll want to know how to value a small business sooner rather later! Tied to the how to value a quick lube business involved in purchasing the business rising and falling the.. Profitability often use this valuation approach advantage in San Diego County hosted more than a decade will... A startup fee to spend our startup capital and where and how the product appears On page... ) loan and a short-term loan charge of creating marketing and sales strategies,.... Will come from a ten year small business Administration ( SBA ) loan and a lube operator advertising... 'Re working with will want to spend our startup capital sure our regulars feel appreciated rewarding... Lifts can be used rather than later building relocation, vehicle owners do more driving now than.. Entities are ready to back gas stations and those serving commercial fuel needs general.. Assistance branding your quick lube service location is about $ 60,000 enable JavaScript your. And basic financial profile s discretionary earnings ( SDE ) how to value small businesses is based seller! Lot of extra Approaches to a successful small-business evaluation relocation, vehicle owners do driving. A daily basis face over 15 auto repair and auto parts competitors in the local.... Comes with an established network of vendors and partners without the need to have following... Have increased, however, youre fully capable of valuing your business stand out value... A decade competitors in the dark higher your SDE multiple, so its important to identify and their. A consummate professional need a minimum of $ 50,000 cash as a writer and editor for more than a.... Gather sales and gross profit data by a stock-keeping unit from each store On a page to drive of...
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