Starting an Automotive Business: What You Should Know

You have plenty of options when it comes to business startups. This industry involves every single thing that people purchase or consume, and building a future based on their needs and interests is quite complex if you wish to be successful.

Perhaps one area where you’ll never run out of customers is the automotive industry. Vehicles have been an integral part of our lives that there’s often an overwhelming demand for automotive service and products. If you’re planning on starting an automotive business, this article will help you prepare.

Different Types of Auto Shop

If you’ve been interested in cars for a good margin of your life and you have a basic understanding of the tricks of the trade, an automotive shop would be right for you. However, you first need to know what type of auto shop you’re going to build. Below are some of the most common options.

Body Shop

Automotive services that focus on the exterior are called body shops. This includes fixing dents, scratches, or replacing old parts with new ones. Upgrades like decals or exterior car accessories also fall under the category of a body shop. While auto mechanics focus on performance and what’s under the hood, body shop services are more about looks restoration or improvement.

Transmission Shop

Maintenance and repair of anything that involves your car’s running power or performance is a job for a transmission shop. However, keep in mind that transmission is quite complex and would often vary from one brand to another. For example, fixing a Subaru’s head gasket is not a DIY job, nor is it a job for an all-around auto mechanic. You would need to find a specialist for this problem and a wide array of transmission concerns.

Tire Repair and Retail

Perhaps the most in-demand part of a vehicle is the tires, mainly because they receive the most beating over time. As you keep using your car, tires eventually wear down and lose traction, requiring you to replace them with new ones. Aside from retailing tires, specializing in tire repair services would also help grow your business further.

Starting an Automotive Business

paint for car concept

You don’t need to pick just one type of auto shop. You can combine two of them or have all three if your budget and space allow you to. Whichever the case, it’s time to determine how you’re going to start an automotive business. Below are the steps you need to follow.

Business Plan

The first thing you need to do is to learn how to make a business plan. Every business startup needs this as this will be your roadmap towards building your company. A business plan details what your business is about, who are the people involved, your mission, vision, budget, and customers, among others. As your business grows further, this plan may need some revision to set a higher goal. That’s why business startups can often start from small beginnings.


Your business’s location will play a vital role in your success. There’s no point starting an automotive business in an area where there are little to no people who own cars or are interested in upgrading their vehicles. You have to be very careful when choosing a location because this is also one of the most expensive areas you need to account for. It would be best if you also considered the bills, rent, and utilities. More importantly, make sure that the place can accommodate a few vehicles at once. After all, you are starting an automotive business.


Your next problem is knowing where to get funding. Some people sell their properties to gather funds, while others partner with their friends and family. If you don’t have either of these two options, you may want to check out loans for small businesses to gather enough budget for a business startup. Your business plan may also help attract investors. Determine the cost of equipment for the business to estimate how much funding you need.

Hiring Employees

Businesses are seldom a one-person show, and this is especially true for an automotive business. You can’t specialize in every single field of auto repair, and even if you can, you won’t be able to accommodate the number of customers if you’re the only one who’s working. Find people knowledgeable in each type of auto shop, and you would have little problems with the hiring process.


Once everything is set in proper order, the last thing you need to do is to attract customers. There are plenty of ways to market your automotive business and bring in more customers to your shop. If you can do this successfully, you can generate more income, establish your name in the industry, and further expand your business.