The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. What often separates one lube shop from another is its creative marketing strategies. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Easy On Oil will be managed by its three founding partners. Marketing programs at lubes should be powerful and . Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. 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. Franchise Quick Lube, Car Wash, and RE in New Mexico! Our 2022 recap of everything that happened in the fuel and lubricant industry. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. In fact, with our location distribution we cover the market. One common method used to value small businesses is based on seller's discretionary earnings (SDE). effective manner and I never once felt like I was in the dark. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Why do diesel exhaust fluid (DEF) prices keep rising and falling? SHOP STATS . LOCATION, LOCATION, LOCATION. Discounted cash flow method: This method determines the present value of a business's future cash flow. Executive Summary 3. She was trained at Ford and later took a position at Chevrolet. Order Reprints. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. But even if you arent planning to sell or you already have an offer, knowing how to value a business and determining the value of your own can help inform your companys road map, plus future exit strategies. 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. The cost of an oil. Knowing your peer companies will also help you assess your market share and growth potential. Verifies vehicle performance by conducting test drives; adjusting controls and systems. If youre interested in learning more about the automotive business buying process and how our expert We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. This does come at a cost though. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. 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. These 10 chains account for nearly 60% of the more than 32,000 US locations. 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. (Business Wire), #15. 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. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. 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. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. 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. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). take status photos of any vehicle part. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. We believe everyone should be able to make financial decisions with confidence. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. Disclaimer: NerdWallet strives to keep its information accurate and up to date. 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. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. 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. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . In 2016, 45% of consumers asked for premium products from their preferred quick lube business. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. A Sample Quick Lube Repair Business Plan Template Table of Content 1. 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. Another 22% of operators combine automotive repair with quick lube services. Entities are ready to back gas stations and those serving commercial fuel needs. First, though, you have to get your financial information in order. Car owners instead prefer to pay someone else to do it for them. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. As cars become more complex, even something as simple as changing the oil could require a manual. NerdWallet strives to keep its information accurate and up to date. About Your Results Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. They are responsible for the direct employment of almost 90,000 people. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Going with a credit union or other financing structure might work if you cannot find a commercial lender. 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. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. 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. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. 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. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. (Digital Dealer), #17. 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. Subscribe to our Blog. 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. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Our partners cannot pay us to guarantee favorable reviews of their products or services. The work done here is every bit as good or better than the nationals, the price seems at least a bit better, and I had a better experience overall. Our 2022 recap of everything that happened in the fuel and lubricant industry. 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. 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. This influences which products we write about and where and how the product appears on a page. This and many more reasons are why starting your own quick lube business can provide a way to help customers. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Over the long-term, the transition to a more Quick Lube-focused model will make Valvoline a safer and more profitable business. Mike has been instrumental in helping me successfully complete 4 transactions (both Buyers obviously won't need all of these documents, but they should still review their own financials. We plan to give our clients a few business cards to hand out to friends when they talk about our quick lube services or buying new parts. 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. Approaches to a successful small-business evaluation. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Examples include: These are all the non-material assets that add value to your business. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. As you can deduce from its name, the market approach to valuing a business determines a companys value based on the purchases and sales of comparable companies within the same industry. We understand that starting a business like ours can be very expensive due to the high cost of equipment. 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. 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. (NOLN Fast Lube Operators Survey), #23. Victory Lane Quick Oil Change. But if you have more financial information on hand, you can try a more comprehensive business valuation tool that includes both profit and revenue, as well as assets and liability, in the calculation. Re-opening a former auto repair or quick lube business can save significant time and money. 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. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Regardless of the option you pursue, get the word out with our help. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. A well-run business will make transitioning ownership, without losing. questions and concerns and Jason was fantastic in answering my questions as well as Businesses in this industry are very important to the general automotive industry. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. KEYWORDS oil change Operations Quick Lube. Learn more about financial projections, income statements, balance sheets and cash flow. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. NerdWallet's ratings are determined by our editorial team. The remaining are small privately-owned establishments. 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. 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. 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. 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. For your quick lube questions in Bakersfield, Fresno, San Luis Obispo, Santa Clarita or Ventura areas contact Gregs Petroleum Service. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. So, established businesses with stable profitability often use this valuation approach. 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. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. The two PEGs that own Express Oil LLC now have more than 700 stores. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. More on liabilities in a bit. : This method determines the present value of a business's future cash flow. This process is automatic. Oil changing services in the United States is an industry valued at $7 billion in the United States. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. Make sure they know by having your license visible front-and-center. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. unconditionally recommend Mike and his team. Why do diesel exhaust fluid (DEF) prices keep rising and falling? (Digital Dealer), #18. Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. person. A valuation represents your companys total worth. assign a green, yellow, or red status to each part. 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. Consumers are shifting toward premium products within the quick lube industry. 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. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. When evaluating offers, please review the financial institutions Terms and Conditions. New Constructs, LLC. www.ratchetandwrench.com is using a security service for protection against online attacks. Often, sellers keep their business liabilities and pay off their debt after their business is sold. For the average business, they account for 60.7% of total expenses. Every state has a different process when it comes to business licensing. (IBIS World), #2. Make sure your company checks these three boxes: You make steady profits. 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 also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? Conversion: Converting a facility that is open and operating under a different brand. 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. 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Will make Valvoline a safer and more here to help them succeed a commercial lender customers and!

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