quick lube business plan

Quick Lube Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Automotive Sector

Do you want to start a Quick Lube company and need to write a business plan? If YES, here is a sample Quick Lube business plan template & feasibility report.

Businesses in this industry are very important to the general automotive industry. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. 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.

Car owners instead prefer to pay someone else to do it for them. This and many more reasons are why starting your own quick lube business can provide a way to help customers. Once you’ve determined to open a quick lube business, the first thing to do is to put together a business plan.

A Sample Quick Lube Repair Business Plan Template

1. industry overview.

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. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. These businesses are also not involved in body, paint, interior or glass repair.

The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes.

The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue.

Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales.

The profitability of individual companies depends on convenient location and good marketing. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. Small companies can compete successfully by owning favorable locations.

Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. 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.

Typically, more than 70 percent of revenue is from oil changes. A typical location performs about 1,200 jobs per month. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above.

However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements.

2. Executive Summary

Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. 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.

At Easy On Oil, we will differentiate ourselves by not only offering oil change or other automotive maintenance services, but by also providing customers with a stocked lubricant and parts store. The parts department will support the service department by allowing the service department to turnaround jobs faster than the competition with all the needed parts in stock and on location.

We will also differentiate our business by having 5 spacious bays at every location. This offers incredible value to customers who need their cars fixed right away. Long wait for services and parts won’t b entertained at East On Oil as we strive to offer the best service and product in our market.

We will attract and maintain a loyal customer base through our customer-oriented focus on business. 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.

At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. People will continue to drive regardless of the general economic market. 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. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives.

Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Temple worked as a top sales rep at Chevrolet for over 13 years. He will be charged with overseeing the sales and marketing of Easy On Oil. 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. She was trained at Ford and later took a position at Chevrolet.

The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. 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. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having.

3. Our Products and Services

EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. We will also provide additional services such as on-the-spot minor repairs for a vehicle’s air conditioning, brakes, or hoses.

We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs.

Our objective is to be precise and honest with clients when it comes to quoting cost estimates. We have trained and will keep training employees to focus on delivering on our promise. We believe that by establishing a strong customer relationships based on trust and integrity, we can benefit from a strong regular customer base and good referrals.

We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. We plan to make sure we don’t ever run out of a specific part, while maximizing inventory turnover. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts.

4. Our Mission and Vision Statement

• Our vision at Easy On Oil is to become the leading business that offers Quick Lube repair services and a well-stocked repair parts shop in San Diego, California. Our goal is to capture a majority of the market in little or no time.
• 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. We plan to offer our clients personalized service by offering convenience and rapid service.
• 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.

Our Business Structure

Easy On Oil will be managed by its three founding partners. Temple Curtis represents sales/management, Helen will focus on the finance/administration section of the business and Aaron will focus on the mechanical aspect of the business. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. People are graciously buying cars and comfort.

As a result, the need for reliable and convenient quick lube store has grown rapidly in California. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service.

Managing Director

• Marketing manager
• Automotive technician
• Mechanic assistant
• Shop attendant
• Security Guard

5. Job Roles and Responsibilities

• Is the senior Technician at Easy On Oil
• Oversees the activities of group technicians, including the recruiting and credentialing processes
• Attend standing meetings (board, committee, etc.)
• Monitor quality and appropriateness of services and care
• Provide guidance and leadership for performance guidelines
• Develop policies and procedures
• Manage strategic development
• Oversee business peer review
• Oversee documentation and care planning
• Manage staffs relations and/or representation
• Handle client complaints
• Address emergency issues
• Support technician education

Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information as it relates to those who need our services
• Sources for clients for the company
• In charge of promoting the company’s image
• In charge of creating marketing and sales strategies, etc.
• Represents the organization in some strategic business meetings
• Handles any other duty as assigned by the director
• Receives payments on behalf of the company
• Issues receipt to customers
• 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
• Tag and monitor fixed assets
• Pay supplier invoices in a timely manner
• Take all reasonable discounts on supplier invoices
• Pay any debt as it comes due for payment
• Monitor debt levels and compliance with debt covenants
• Issue invoices to customers
• Handles financial transaction on behalf of the company
• Interfaces with our bankers
• In charge of payment of tax, levies and utility bills
• Handles any other duty as assigned by the office

Mechanic Assistant

• 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
• Performs tune-ups on vehicles
• 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

Shop Attendant

• Sees to it that clients are attended to and on time
• Books clients for repairs or check in
• Passes information to the technicians about clients
• Reaches out to clients when information needs to reach them

Automotive Technician

• Determines vehicle condition by conducting inspections and identifying worn and damaged parts.
• Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures.
• 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.
• Verifies vehicle performance by conducting test drives; adjusting controls and systems.
• Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards.
• Maintains vehicle records by annotating services and repairs.
• Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs.
• Keeps supplies ready by inventorying stock; placing orders; verifying receipt.
• Updates job knowledge by participating in educational opportunities; reading technical and regulation publications.
• Mops the floors
• Keeps the facility clean
• Cleans the bathroom
• Empties the trash
• Washes the windows

Security Guards

• Ensures that the shop is secured at all time
• Controls traffic and organize parking
• Patrols around the building on a 24 hours basis
• Submits security reports weekly
• Handles any other duty as assigned by the manager

6. SWOT Analysis

Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California.

It is part of the San Diego–Tijuana conurbation, the second-largest trans-border agglomeration between the U.S. and a bordering country after Detroit–Windsor, with a population of 4,922,723 people. We’ve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. 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. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. 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.

At Easy On Oil, our major weaknesses will be the time and resources it will take us to establish and publicize our services to the people of San Diego. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. 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.)

• Opportunities

Our Business location provides us with a vast market and many opportunities. Tourism alone in San Diego is a major industry owing to the city’s 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.

San Diego’s Spanish and Mexican heritage is reflected in many historic sites across the city, such as Mission San Diego de Alcala and Old Town San Diego State Historic Park.

Also, the local craft brewing industry attracts an increasing number of visitors for “beer tours” and the annual San Diego Beer Week in November. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. The visitor industry provides employment for more than 160,000 people.

At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. Over half of these competitors offer both auto repair services, although without an inventory store. Among these, only a few are major national chains. The remaining are small privately-owned establishments. 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.

7. MARKET ANALYSIS

• Market Trend

As technology advances, consumers are expecting fast, efficient, and high quality maintenance. The largest technological advancement in the automotive industry is the introduction of electric vehicles. Electric vehicles impact the future of the automotive repair industry in many different ways.

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. To start off, there are two major types of electric cars that are on the roads today. The most popular has been around for a while, hybrid-electric cars.

Along with hybrids, all-electric cars are taking to the streets across the world. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle.

This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. So, most hybrid-electric cars do not ever run on electricity alone. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally.

These are some of the most efficient cars to ever be driven. This does come at a cost though. 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. Along with that, all-electric vehicles can pose some challenges to auto mechanics.

All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. 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.

So, most maintenance on electric cars will be more software driven. 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. 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.

8. Our Target Market

Our plan at Easy On Oil is to service the middle and upper income markets. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. 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.

• Local Residents’ Regular Customer Base

At Easy On Oil, we’ve made plans to create a significantly large regular customer base. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business.

• Local Mechanics and Freeway Traffic

This segment comprises approximately 25% of our revenue at Easy On Oil. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market.

Our Competitive Advantage

Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service.

9. SALES AND MARKETING STRATEGY

• Sources of Income

At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes.

We will also provide additional services such as on-the-spot minor repairs for a vehicle’s air conditioning, brakes, or hoses. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals;

• Providing automotive oil change and lubrication services
• Providing automotive emissions testing services
• Providing automotive rustproofing and undercoating services
• Providing automotive safety inspection services
• Providing automotive tire repair services
• Providing emissions testing with repair services
• Spray-on bed liner installation for trucks
• Full range of Auto Lubricants and Repair Parts store.

10. Sales Forecast

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. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Our sales forecast at Easy On Oil is as follows;

• First Year: $850,000
• Second Year: $1,994,000
• Third Year: $3,119,000
• Marketing Strategy and Sales Strategy

At Easy On Oil, our marketing and sales strategy will focus on reaching our target audience. To reach our local customer base, we will employ a marketing manager. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. The following tactics will be used prior and after we launch:

• 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
• Maintaining the website with new trends and advises.

11. Publicity and Advertising Strategy

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 market’s perspective, by offering convenience, expedient quick lube services, customer service excellence, and by working with local mechanics.

At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services.

We plan is to grow sales through word-of-mouth. 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. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business.

12. Our Pricing Strategy

At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. 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.

• Payment Options

Most of our competitors have adopted point-of-sale systems in their stores. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. At the end, the information is used to help formulate pricing, marketing and merchandising strategies.

Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. Some of them also have electronic work order systems available amongst their various service centres.

This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. At Easy On Oil, we’ve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. We hope to make available the following payment options for our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment through POS
• Payment through PayPal
• Payment via check
• Payment with cash

13. Startup Expenditure (Budget)

Our plan at Easy On Oil is to spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. 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.

We understand that starting a business like ours can be very expensive due to the high cost of equipment. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. Below is a detailed analysis of how we want to spend our startup capital.

• Cost of incorporating the Business – $750.
• 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
• Inventory: $1,200,000
• Miscellaneous: $5,000

From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully.

Generating Funding/Start up Capital for Easy On Oil

Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. Note that each of the three co-owners will invest an equal amount. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan.

14. Sustainability and Expansion Strategy

At Easy On Oil, we understand the importance of establishing reliability and consistency in business. 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.

We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. We believe earnestly that this will also make our customers more comfortable working with us when they see the same technicians each time they come in for changes. We will give a guarantee on all our repairs for a certain amount of miles or time.

Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. We will always stress the fact that we only offer reliable services. 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 don’t need.

Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers.

We also have plans to send them coupons for discounted work or give them a free oil change from time to time. 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.

We also plan to leverage an automotive service scheduling software program. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers : In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging and Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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How to Start an Oil Change Business

An oil change business keeps neighbors' cars maintained and on the road by offering regular services such as oil changes, windshield wiper replacement, and air conditioning recharging. Speedy service with a smile and competitive pricing encourages your customers to come back the next time.

Learn how to start your own Oil Change Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start an Oil Change Business by following these 10 steps:

• Plan your Oil Change Business
• Form your Oil Change Business into a Legal Entity
• Register your Oil Change Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Oil Change Business
• Get the Necessary Permits & Licenses for your Oil Change Business
• Get Oil Change Business Insurance
• Define your Oil Change Business Brand
• Create your Oil Change Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your Oil Change Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Oil Change Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your Oil Change Business?

Business name generator, what are the costs involved in opening an oil change business.

In order to get off the ground, your largest investment will be for the equipment in your garage bays. Expect to invest at least $250,000 for a two-car facility, initial training, and media launch for your location. Multiple franchise opportunities can help you corner the local market and provide assistance for your initial growing pains.

What are the ongoing expenses for an Oil Change Business?

The equipment in the garage such as lifts and pumps must be maintained by a qualified service company. You will need to maintain a stock of a variety of oils such that you are able to service even an uncommon vehicle from time to time. Filters, gaskets, and other expendable parts must be kept in inventory as well. It will be important to have a highly trained automotive technician on the payroll that is able to properly supervise less experienced workers, who may be just starting out on their automotive careers.

Who is the target market?

Everybody who drives a car is a potential customer. The most lucrative areas are situated at the edge of urban markets, as suburban families own more vehicles and will spend money on simple services. Rural markets have fewer customers available, and some of those will want to change their own oil. Inner cities have higher costs associated with the property while customers have less cash for extras.

How does an Oil Change Business make money?

Your customers pay you a minimal fee for completing a quick oil change on their personal vehicle. Connect with local car rental agencies or delivery services to generate a larger base of repeat customers. When you expand the number of services offered, clients will return to you more often increasing profits.

You will want to shop your competitors to ensure your price is appropriate to your neighborhood. A simple oil change averages between $25 and $55. Most services at a quick oil change shop will cost under $100, but accessories and parts like windshield wipers provide excellent profit margins.

How much profit can an Oil Change Business make?

With many oil franchises bringing in nearly $250,000 a year, as the owner, it is possible to see a net profit of $75,000 to $80,000 a year. If your market can support the demand for additional bays, your operational income can rise dramatically above the average if your schedule is filled with appointments from open to close.

How can you make your business more profitable?

While an oil change in itself makes very little profit, the addition of extra services and parts for each customer raises the average profit margin up to 35% for services rendered per customer. Your technicians must walk the fine line between selling extra services just to make a buck vs. providing honest advice to your customers. In the long run, honesty will build a more loyal clientele that will be ready to pay for the extras.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Oil Change Business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an oil change business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a oil change business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your oil change business will be in compliance and able to obtain a CO.

Liability Waivers

To avoid liability and potential lawsuits, oil change businesses should have their clients sign waivers.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Oil Change Business needs and how much it will cost you by reading our guide Business Insurance for Oil Change Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market an Oil Change Business

Your most visible marketing tool is your store front. Make sure that your signage clearly states the service that you offer and that your property is well-maintained to welcome in new customers. Direct marketing campaigns that include a discount or coupon for your garage will help generate your initial flow of traffic. Since almost every automotive garage offers oil changes, price and speed will be key elements in driving customers to your door. Make sure that you are offering a good price, but one that also supports your business model.

How to keep customers coming back

Your first year of service will focus on large promotional campaigns in order to build local recognition and a customer base. Make use of radio, television, newspapers, social media, and direct marketing to flood the area with your name and brand. Offering discount coupons or a new-customer bonus encourages folks to check you out. Once they are in the door, it is up to your technicians to complete their work quickly. Customer service that also encourages your clients to complete other needed maintenance at your location helps to build a sense of caring and community, creating a repeat customer.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you enjoy working with cars, customers, and providing a valuable service to the community, this might be the right business opportunity for you. There is a sizable investment required to get off the ground, but with the right location, marketing, and constant hard work, it can be very rewarding.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at an Oil Change Business?

You and your employees will have a fairly regular schedule that includes:

• Maintaining the garage bays, lifts, and pumps
• Neatening up the customer waiting lounge
• Scheduling appointments such that customers never have to wait long
• Ordering supplies including oil, filters, gaskets and other automotive parts
• Basic money handling
• Process payroll
• Basic marketing tasks
• Maintaining your knowledge level for servicing all major brands of cars and new models

What are some skills and experiences that will help you build a successful Oil Change Business?

If you are going to be doing the oil changes yourself, then you should have completed basic automotive maintenance courses at your local technical university along with a couple years of experience applying your knowledge in the real world. Otherwise, as the owner you will need to:

• Understand OSHA standards to provide a safe working and customer service environment
• Have completed basic coursework in business management and administration
• Have good customer service skills
• Have the ability to train your employees in proper completion of all services offered
• Understanding of local regulations regarding disposal of hazardous wastes i.e. used oil and other fluids
• Basic marketing skills

What is the growth potential for an Oil Change Business?

Everybody needs to have their oil changed one to four times a year. If you establish a reputation for providing quick, reliable service at a competitive price, the word will spread. In a major metropolitan area, the opportunity to expand to multiple locations is very real. If you wish to take further advantage of your current location, expanding the services you provide will help to raise profits with minimal investment. In upscale neighborhoods, you may be able to offer a mobile oil change service for your wealthier clients.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting an Oil Change Business?

Location, location, location. You may be able to find low rent for a fully-equipped garage in an industrial park at the edge of town, but that requires your customers spend some time to find you. When you are positioned in a busy commercial area full of strip malls and office buildings, you encourage your customers to complete this errand during lunch, or while out and about.

How and when to build a team

You may wish to have a business partner in this endeavor. One person may be focused on the mechanical part of the garage, while the other excels at marketing and maintaining good business practices. Both of you should be on board from the beginning. Hire your oil change technicians two weeks before opening to review service standards and provide training.

Useful Links

Industry opportunities.

• Grease Monkey Franchise
• Valvoline Instant Oil Change Franchise

Real World Examples

• Andy's Mobile Oil Change-Indianapolis, IN
• Take 5 Oil Change - Metairie, LA
• Bolton Oil - Lubbock, TX

Further Reading

• Mobile Oil Change Business Are Very Hard to Succeed In
• Mobile Oil Change Business-Oil Changing Methods

Have a Question? Leave a Comment!

How to Start a Quick Lube

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• Making Business Plans
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How to Open a Baby Store

How to start a granite fabrication shop, how to start a barbeque business.

• How to Open a Clothes Shop
• How to Open a Brewpub or Microbrewery

The task of changing the oil in a car is one that every car owner will have to undertake at some point. While it is a relatively simple process, many car owners do not want to take the time to do it or do not want to get their hands dirty. Because of this, many car owners are willing to pay someone else to do it for them. Starting your own quick lube business can provide a way to help customers and charge a fair price for the service you give.

Make a business plan for your quick lube business. In the business plan, you should include information about what type of services you plan to offer and what will separate you from the competition. You should also include information about any other oil change businesses in the area and how they will impact yours. Make some financial projections such as a sample income statement, balance sheet and statement of cash flows. You should also include information about whether you will buy into a franchise or start an independent quick lube business.

Get the money you need to get started with your business. Borrow the money from a commercial lender, bring on investors in the business or both. You can talk to your friends and family members to see if anyone is interested in investing. Investors and lenders will need to see a copy of your business plan before making a decision, in most cases.

Secure a location for your quick lube business. In this type of business, you have a very special set of needs for a location. You need a building that has an office space and a waiting area for customers. You also need a work area that has multiple bays for cars to pull into. Work with a Realtor in your area who specializes in commercial properties to find a location for your business. Using the market analysis and suggestions from the Realtor, determine how many bays your startup business needs. Two bays may be appropriate for some locations, but large metro areas may require three or four bays to accommodate customers and continued growth.

Buy a business license for your quick lube business. Every city has its own process for getting a license. Most cities simply require you to fill out an application for a business license and pay a fee. Once you submit the form and the fee, the application must be approved. At that point, the city issues a certificate that should be conspicuously displayed in your business -- at the front desk or in the waiting area, for example.

Purchase a business owner's insurance policy. Get a policy that provides financial protection for the building that you acquire as well as for the equipment inside. The policy should also have general liability protection with a limit of at least $1,000,000 in most cases. Buy a worker's compensation policy for your employees. If your employees are injured, this provides compensation for lost wages and medical bills.

Develop a relationship with a distributor. Buying your oil, filters and other supplies in bulk gets you a discount. Call quick lube businesses in other areas and ask the owner who their distributors are. As long as owners know that you are not competing against them directly, they may be willing to help you. Try calling auto parts stores as well to get contact information for distributors. Once you get in contact with a distributor, ask for the sales rep who serves your area. At that point, negotiate the price for the supplies that you need. At first, your distributor may not give you the best deal available. After you prove that you are in business for the long-term, your distributor may give you better pricing on your supplies.

Acquire the equipment you will need for your business. You will need tools to change the oil as well as a lift to go under the cars. You will also need equipment for the office such as a computer and furniture. You will also need some furniture for the waiting area for customers.

Hire certified mechanics for your business. Look for employees with at least two years of experience in the automotive industry. Hire a garage manager to oversee the other employees. Ideally, your manager should have at least 5 to 10 years of experience in the industry with management experience as well. This way, the person in charge of the garage will be familiar with most issues that come up along the way.

Promote your quick lube business. Pass out coupons, advertise in the paper and on the radio. If you have enough in the budget, you may also want to advertise on television. By doing this, you can get the word out about your new business and bring in new customers. Offer $15 off an oil change for new customers. Even if you do not make much money initially, it will get customers in the door.

• Entrepreneur.com: Mobile Oil-Change Service
• Gaebler: How to Start an Automobile Oil Change Business
• This business is very competitive and customers are primarily concerned with price. If you have a lot of competition in the area, make sure that the area can support another quick lube business before getting started.

Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.

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How to Start a Profitable Oil Change Business [11 Steps]

Business steps:, 1. perform market analysis., are oil change businesses profitable, 2. draft a oil change business plan..

Launching an oil change business requires careful planning and strategic thinking. A comprehensive business plan is the blueprint for success, outlining the path from concept to profitable operation. Here's a structured guide to help you draft your oil change business plan:

How does a oil change business make money?

3. develop a oil change brand., how to come up with a name for your oil change business, 4. formalize your business registration., resources to help get you started:, 5. acquire necessary licenses and permits for oil change., what licenses and permits are needed to run a oil change business, 6. open a business bank account and secure funding as needed., 7. set pricing for oil change services., what does it cost to start a oil change business, 8. acquire oil change equipment and supplies., list of software, tools and supplies needed to start a oil change business:, 9. obtain business insurance for oil change, if required., 10. begin marketing your oil change services., 11. expand your oil change business..

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Quick Lube Business Plan Template

Explore Options to Get a Business Plan.

Are you interested in starting your own Quick Lube Business?

Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management, why write a business plan.

Why write a business plan for Quick Lube? A business plan is an essential tool for any business, including Quick Lube. It outlines the goals, objectives, and strategies of the business, and serves as a roadmap for its success. Here are some specific reasons why writing a business plan is crucial for Quick Lube: 1. Clarify goals and objectives: By writing a business plan, the owners of Quick Lube can clearly define their goals and objectives for the business. This includes financial targets, growth plans, and other important milestones. This helps to ensure that everyone involved in the business is on the same page and working towards the same goals. 2. Attract investors and partners: A well-written business plan can be a powerful tool for attracting investors and partners to Quick Lube. It provides a detailed overview of the business, its potential for success, and the strategies in place to achieve it. This can help to secure funding and resources to support the growth of the business. 3. Serve as a roadmap: A business plan serves as a roadmap for the business, providing a clear and organized plan for achieving its goals. This is especially important for a growing business like Quick Lube, as it can be easy to get sidetracked without a clear plan in place. The business plan can also be used to track progress and make adjustments as needed. 4. Communicate the business's vision: A business plan can be a powerful tool for communicating the vision and values of Quick Lube to employees, customers, and other key stakeholders. It can help to create a unified understanding of the business and its purpose, and can also be used as a marketing tool to attract and retain customers. 5. Identify competition and market differentiation: Writing a business plan requires conducting thorough market research, including identifying competitors and differentiating Quick Lube's offerings from others in the market. This can help the business to better understand its position and develop strategies to stand out and succeed. 6. Understand the target market: Another important aspect of writing a business plan is conducting a customer analysis. This helps to identify the target market for Quick Lube's services and better understand their needs and preferences. This can lead to the development of more effective marketing strategies and improved customer satisfaction. 7. Determine financial needs: A business plan also helps to determine the financial needs of the business, including how much capital is required to start and operate the business, and how much funding may be needed in the future. This can help the owners of Quick Lube to plan and budget accordingly, and to seek funding if necessary. 8. Analyze and improve the business model: Writing a business plan requires a thorough analysis of the business model, including revenue streams, expenses, and operational processes. This can help to identify areas for improvement and optimization, leading to increased profitability and growth. 9. Position the brand: A business plan allows Quick Lube to define its brand identity and position in the market. This includes identifying the unique value proposition of the business and how it differentiates from competitors. This can help to create a strong and memorable brand image, which is essential for success in the competitive automotive industry. 10. Uncover new opportunities: The process of brainstorming and drafting a business plan can also lead to the discovery of new opportunities for Quick Lube. By critically examining the business and its market, new ideas for products, services, and strategies may arise, leading to potential growth and success. 11. Monitor growth and success: A business plan is not a one-time document, but rather a living document that can be updated and revised as the business grows and evolves. By comparing actual results to the forecasts and assumptions in the business plan, the owners of Quick Lube can track the growth and success of the business, and make adjustments as needed to ensure its long-term survival and success.

Business plan content

• Executive Summary: This is a brief overview of the entire business plan, summarizing the key points and goals of the business. 2. Company Overview: This section provides detailed information about the company, including its history, mission statement, legal structure, and management team. 3. Industry Analysis: This section analyzes the current state of the quick lube industry, including market trends, competition, and potential opportunities and threats. 4. Consumer Analysis: Here, the target market for the business is identified and analyzed, including their demographics, needs, and buying habits. 5. Competitor Analysis & Advantages: A thorough analysis of the direct and indirect competitors in the quick lube market, as well as the advantages the business has over them. 6. Marketing Strategies & Plan: This section outlines the marketing strategies and tactics that will be used to promote the business, including advertising, promotions, and customer retention plans. 7. Plan of Action: This section details the specific steps that will be taken to launch and grow the business, including timelines, milestones, and responsibilities. 8. Management Team: Information about the key members of the management team and their roles and responsibilities is included in this section. 9. Financial Projections: This section includes projected financial statements, such as income statement, cash flow statement, and balance sheet, for the first 5 years of the business. It also includes details on the start-up capital required, salary and wage plans, and financial highlights. 10. Appendix: This section includes any supporting documents, such as market research data, resumes of key team members, and legal documents. 11. Cover Page and Table of Contents: These are necessary components that provide a professional and organized look to the business plan. The cover page typically includes the business name, logo, and contact information, while the table of contents lists all the sections and page numbers for easy navigation. 12. Executive Summary: This section summarizes the key points of the business plan and is usually the last section to be written. It should be concise and compelling, capturing the attention of potential investors or lenders. 13. Appendix: This section includes any supporting documents, such as market research data, resumes of key team members, and legal documents. 14. Cover Page and Table of Contents: These are necessary components that provide a professional and organized look to the business plan. The cover page typically includes the business name, logo, and contact information, while the table of contents lists all the sections and page numbers for easy navigation.

Instructions for the business plan template

Instructions for the Business Plan Template: 1. Download the Business Plan Template: To start, download our Quick Lube business plan template. The template is a word document that can be easily edited to include information about your business. 2. Familiarize yourself with the template: The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in red font and some tips are also included in blue font. 3. Fill out the form: The template includes all necessary sections for a comprehensive business plan. This includes sections on your business overview, market analysis, marketing and sales strategies, operations plan, and more. Fill out each section with as much detail as possible. 4. Customize for your business: Make sure to customize the template to fit your specific business and industry. This will make your business plan more accurate and tailored to your needs. 5. Use the financial forecast template (optional): The free template includes all sections excluding the financial forecast. If you would like to include this in your business plan, we recommend using our financial forecast template to accurately project your business's financial future. 6. Review and revise: Once you have completed the template, review it for any errors or missing information. Make revisions as needed to ensure your business plan is thorough and professional. 7. Seek additional help (optional): If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants. We are here to support you in creating a successful business plan. By following these instructions and using our business plan template, you can create a comprehensive and professional business plan for your Quick Lube business. Good luck!

Ongoing business planning

Ongoing business planning is crucial for the success and sustainability of a Quick Lube business. As with any business, the market and industry are constantly evolving and changing. Ongoing business planning allows the business owner to adapt to these changes and stay ahead of the competition. One of the main reasons ongoing business planning is important for a Quick Lube business is to set and achieve goals. Without a clear plan and goals in place, it is challenging to measure the success and growth of the business. By regularly updating the business plan, the owner can set new goals and adjust strategies to meet changing market demands. Another benefit of ongoing business planning is to identify potential risks and challenges. By regularly reviewing and updating the business plan, the owner can identify potential risks and create contingency plans to mitigate them. This helps to ensure the stability and sustainability of the business. Moreover, ongoing business planning allows the business owner to stay competitive in the market. As the industry evolves, new technologies, products, and services emerge. By regularly updating the business plan, the owner can incorporate these changes into the business and stay competitive with other businesses. In addition, ongoing business planning helps with financial management. By regularly reviewing and updating the financial projections and budget, the owner can make informed decisions about investments, expenses, and pricing strategies. This ensures the financial health of the business and helps to avoid financial pitfalls. Furthermore, ongoing business planning allows the business owner to stay connected with their customers. By regularly reviewing customer feedback and preferences, the owner can tailor their services to meet the needs and expectations of their target market. This helps to build customer loyalty and attract new customers, ultimately driving business growth. In conclusion, ongoing business planning is essential for a Quick Lube business to stay competitive, adapt to changing market demands, and achieve long-term success. By regularly reviewing and updating the business plan, the owner can set and achieve goals, identify potential risks, stay competitive, manage finances effectively, and connect with customers. It is a crucial process that should be practiced regularly to ensure the continued growth and success of the business.

Bespoke business plan services

Need a Customized Business Plan for your Quick Lube Business?

Overview of Our Company Our company specializes in providing business plan templates for entrepreneurs and business owners. We have a team of experienced consultants who have worked with over 300 startups from various industries around the world. With our expertise in startup fundraising and operations, we have helped our clients raise over $100 million in funding. Our business plan templates are designed to be user-friendly and suitable for businesses at any stage, whether you are a budding entrepreneur or a seasoned businessman. We also offer a free 30-minute business consultation to address any questions or concerns you may have about starting or growing your business. Our goal is to help entrepreneurs succeed and thrive in their industries.

Business plan template FAQ

Q: What is a Quick Lube business? A: A Quick Lube business is a type of automotive service center that specializes in providing fast and convenient oil changes and other basic maintenance services for vehicles. Q: Is there a need for Quick Lube services? A: Yes, there is a high demand for Quick Lube services as regular oil changes are essential for maintaining the health and longevity of vehicles. Additionally, many people value convenience and are willing to pay for a quick and efficient service. Q: How is a Quick Lube business different from a traditional mechanic shop? A: Quick Lube businesses focus on providing fast and basic maintenance services such as oil changes, while traditional mechanic shops offer a wider range of services including more complex repairs. Q: Do I need any special training or experience to start a Quick Lube business? A: While having experience in the automotive industry is beneficial, it is not necessary. Training programs and resources are available to help you learn the necessary skills and knowledge to run a successful Quick Lube business. Q: How much does it cost to start a Quick Lube business? A: The cost of starting a Quick Lube business can vary depending on factors such as location, size of the facility, and equipment. However, our business plan template includes estimated startup costs and a detailed financial plan to help you budget and plan accordingly. Q: Do I need any special permits or licenses to operate a Quick Lube business? A: Yes, you will need to obtain a business license and possibly other permits from your local government. It is important to research and comply with all necessary regulations to ensure your business is operating legally. Q: How can I attract customers to my Quick Lube business? A: Marketing strategies such as offering discounts, promoting your services on social media, and partnering with other local businesses can help attract customers. Providing excellent customer service and quality services can also help you retain loyal customers. Q: Can I offer additional services besides oil changes? A: Yes, many Quick Lube businesses offer additional services such as tire rotations, fluid top-ups, and basic vehicle inspections. It is important to carefully consider the demand for these services in your area and ensure you have the necessary equipment and training to offer them. Q: How can I ensure the quality of my services? A: It is important to invest in high-quality equipment and products, as well as properly train your staff on industry best practices. Regularly monitoring and maintaining your equipment and conducting customer satisfaction surveys can also help ensure the quality of your services. Q: What are some potential challenges of starting a Quick Lube business? A: Some potential challenges may include competition from other automotive service providers, fluctuating oil prices, and the need to constantly stay updated on industry trends and advancements. However, with a solid business plan and a commitment to providing excellent services, these challenges can be overcome.

• Project Managment

Quick Lube Business Plan

Introduction.

Quick Lube Business Plan is a comprehensive guide to starting and running a successful quick lube business. This plan provides an overview of the industry, outlines the necessary steps to get started, and provides a detailed financial analysis of the business. It also includes a marketing plan, a customer service plan, and a risk management plan. With this plan, entrepreneurs can confidently launch their own quick lube business and be successful in the industry.

How to Create a Comprehensive Quick Lube Business Plan

Creating a comprehensive quick lube business plan is essential for any entrepreneur looking to start a successful quick lube business. A business plan is a document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for the business and provides potential investors and lenders with an understanding of the business’s objectives and potential for success.

The first step in creating a comprehensive quick lube business plan is to conduct market research. This research should include an analysis of the current market, potential competitors, and customer needs. This research will provide the foundation for the business plan and will help to identify potential opportunities and threats.

The next step is to develop a business model. This model should include a description of the services offered, pricing structure, and marketing strategy. It should also include a financial plan that outlines the expected costs and revenues associated with the business.

Once the business model is developed, the next step is to create a marketing plan. This plan should include a detailed description of the target market, the marketing strategies to be used, and the budget for the marketing efforts.

The final step is to create a financial plan. This plan should include a detailed analysis of the expected costs and revenues associated with the business. It should also include a detailed description of the expected cash flow and the sources of financing.

Creating a comprehensive quick lube business plan is an important step in starting a successful business. By conducting market research, developing a business model, creating a marketing plan, and creating a financial plan, entrepreneurs can ensure that their business is well-positioned for success.

The Benefits of Investing in a Quick Lube Business

Investing in a quick lube business can be a lucrative and rewarding venture. Quick lube businesses provide a valuable service to customers by offering fast, convenient oil changes and other automotive maintenance services. By investing in a quick lube business, you can benefit from a steady stream of income, a low overhead cost, and the potential for long-term growth.

One of the primary benefits of investing in a quick lube business is the steady stream of income it can provide. Quick lube businesses are typically open seven days a week, and customers often return for regular oil changes and other maintenance services. This provides a reliable source of income that can be used to pay for overhead costs and other expenses.

Another benefit of investing in a quick lube business is the low overhead cost. Quick lube businesses require minimal start-up costs, and the cost of operating the business is relatively low. This makes it easier to turn a profit and allows for more flexibility in pricing.

Finally, investing in a quick lube business can provide the potential for long-term growth. As the business grows, you can expand the services offered and hire additional staff to meet customer demand. This can lead to increased profits and a larger customer base.

In conclusion, investing in a quick lube business can be a great way to generate a steady stream of income, keep overhead costs low, and provide the potential for long-term growth. If you are looking for a business venture that offers these benefits, a quick lube business may be the right choice for you.

Understanding the Financials of a Quick Lube Business

Understanding the financials of a quick lube business is essential for any business owner. Quick lube businesses are typically service-based businesses that provide oil changes, tire rotations, and other automotive services. As such, it is important to understand the financials of a quick lube business in order to ensure its success.

The first step in understanding the financials of a quick lube business is to understand the different types of revenue that the business generates. The primary source of revenue for a quick lube business is the sale of services. This includes oil changes, tire rotations, and other automotive services. Additionally, quick lube businesses may also generate revenue from the sale of parts and accessories.

The next step in understanding the financials of a quick lube business is to understand the different types of expenses that the business incurs. The primary expenses for a quick lube business include labor costs, rent, utilities, and supplies. Additionally, quick lube businesses may also incur expenses related to advertising and marketing.

Finally, it is important to understand the different types of taxes that a quick lube business may be subject to. Quick lube businesses are typically subject to both federal and state taxes. Additionally, quick lube businesses may also be subject to local taxes, depending on the jurisdiction in which they operate.

Understanding the financials of a quick lube business is essential for any business owner. By understanding the different types of revenue and expenses that the business generates, as well as the different types of taxes that the business may be subject to, business owners can ensure that their quick lube business is successful.

Strategies for Growing Your Quick Lube Business

1. Invest in Quality Customer Service: Providing excellent customer service is essential for any business, but especially for a quick lube business. Customers should be greeted warmly and treated with respect. Make sure your staff is well-trained and knowledgeable about the services you offer.

2. Offer Special Deals and Promotions: Offering special deals and promotions can help attract new customers and keep existing customers coming back. Consider offering discounts for repeat customers, loyalty programs, or special promotions for certain services.

3. Utilize Social Media: Social media is a great way to reach potential customers and keep existing customers informed about your business. Create a Facebook page, Twitter account, and other social media accounts to promote your business and engage with customers.

4. Invest in Quality Equipment: Investing in quality equipment is essential for any quick lube business. Make sure you have the right tools and equipment to provide the best service possible.

5. Focus on Quality: Quality is key when it comes to providing quick lube services. Make sure your staff is well-trained and knowledgeable about the services you offer.

6. Develop a Website: Having a website is essential for any business. Make sure your website is professional and easy to navigate. Include information about your services, contact information, and any special deals or promotions you may be offering.

7. Network with Other Businesses: Networking with other businesses in the area can help you reach more potential customers. Consider joining local business associations or chambers of commerce to get your name out there.

8. Advertise: Advertising is a great way to reach potential customers. Consider advertising in local newspapers, radio, or television. You can also use online advertising such as Google AdWords or Facebook Ads.

9. Invest in Employee Training: Investing in employee training is essential for any business. Make sure your staff is well-trained and knowledgeable about the services you offer.

10. Utilize Technology: Utilizing technology can help make your business more efficient and cost-effective. Consider investing in software that can help streamline your processes and make it easier for customers to book appointments or pay for services.

Tips for Optimizing Your Quick Lube Business Operations

1. Utilize Automation: Automation can help streamline your quick lube business operations and reduce the amount of time spent on manual tasks. Consider investing in software that can automate customer service, scheduling, and billing processes.

2. Implement a Quality Control System: Quality control is essential for any business, and a quick lube business is no exception. Establish a system that ensures all services are performed correctly and efficiently.

3. Train Your Employees: Invest in training your employees to ensure they are knowledgeable and skilled in providing the best customer service. This will help ensure that customers have a positive experience and are more likely to return.

4. Streamline Your Inventory: Make sure you have the right inventory on hand to meet customer needs. This will help reduce costs and ensure that customers can get the services they need quickly.

5. Monitor Your Performance: Track your performance to identify areas of improvement. This will help you make informed decisions about how to optimize your operations.

6. Invest in Technology: Investing in the latest technology can help you stay competitive and provide better services to your customers. Consider investing in software that can help you manage your operations more efficiently.

7. Utilize Customer Feedback: Gather customer feedback to identify areas of improvement. This will help you understand what customers want and how you can better meet their needs.

8. Develop a Marketing Strategy: Develop a marketing strategy to reach new customers and increase sales. Consider using digital marketing tactics such as social media, email campaigns, and search engine optimization.

By following these tips, you can optimize your quick lube business operations and ensure that you are providing the best services to your customers.

The Impact of Technology on Quick Lube Businesses

The impact of technology on quick lube businesses has been profound. In recent years, technological advances have enabled quick lube businesses to streamline their operations, improve customer service, and increase their profitability.

One of the most significant impacts of technology on quick lube businesses is the ability to automate many of their processes. Automation has allowed quick lube businesses to reduce labor costs, increase efficiency, and improve accuracy. Automation has also enabled quick lube businesses to offer customers more convenience, such as online scheduling and payment options.

Technology has also enabled quick lube businesses to better track and analyze customer data. This data can be used to identify customer preferences and trends, allowing quick lube businesses to tailor their services to meet customer needs. Additionally, this data can be used to identify areas of improvement and develop strategies to increase customer satisfaction.

Finally, technology has enabled quick lube businesses to better market their services. Through the use of social media, email campaigns, and other digital marketing strategies, quick lube businesses can reach a larger audience and increase their customer base.

In conclusion, technology has had a significant impact on quick lube businesses. Automation, data analysis, and digital marketing have enabled quick lube businesses to streamline their operations, improve customer service, and increase their profitability.

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Sep 1, 2021 1:00:00 PM

How to grow your quick lube business.

Written by: Dave Weston

So you've decided you want to grow your oil change business, but aren't sure how to enact that change. Don't worry, we've all been there. You have the goals, ideas, and dreams...but are coming up a little short on the plans. It can be discouraging as a business owner when you're not entirely sure what steps you should take to see the growth you want. 

As an owner in the quick lube space specifically, this can feel even more daunting. This sector of the automotive industry is highly competitive, and sometimes maintaining what you already have can seem like a feat in and of itself. But what if we told you it's easier than you think? Let's go over how to grow your quick lube business. 

Top Ways to Grow Your Quick Lube Business:

• Maintain low turnover
• Streamline your processes
• Enable digital vehicle inspections
• Perfect appointment scheduling
• Get loyal customers to leave reviews

Maintain Low Turnover 

To create a solid foundation for growth, you'll need a reliable, steadfast team by your side. The only quick turnovers happening in your shop should concern vehicles. Good help is hard to find these days, so making your place of employment more attractive than others should be a top priority. 

Time is money, and working to maintain the employee relationships you have currently will save you both. If you're focused on growth, you can't continuously be focused on hiring and training, unless it's to expand your team. Getting new employees up to speed on a regular basis could be costing you your dreams of growth more than you realize. 

So, what can you do to maintain your current team? Reassess what you're currently providing them. If you haven't done so already, create opportunities for incentives to keep them motivated and happy. Your biggest priority is getting as many vehicles in and out of your doors as possible, but what motivates your employees to maintain that level of high productivity day in and day out? 

Streamline Your Processes

In order to create an experience that can be replicated as you grow, it's important to make sure all your existing processes are as boilerplate as possible. This not only aids in creating consistency and more revenue, but also training any new employees that come on board as your business expands. 

Oftentimes investing in the right software is the best course of action. This digital age affords us the ability to better communicate not only with an internal team, but with customers as well — creating an excellent, efficient experience for everyone involved. So, what can you start implementing today?

Enable Digital Vehicle Inspections

Digital vehicle inspections are a game changer for shops looking to streamline processes. Not only are they great for quick lube businesses looking to create templated processes, they also enable you to increase transparency and expediency with your customers. These reports allow your technicians to

• customize your inspections to fit your existing procedures 
• take status photos of any vehicle part 
• assign a green, yellow, or red status to each part
• add technician notes to the photos 
• text the finished report to the customer's mobile device 

Digital inspections are a great way to show the value of service to your customers, which can ultimately allow you to sell more services per visit.

Perfect Appointment Scheduling

When it comes to growing your business, you already know that you want to increase the amount of customers coming in for regular services. It can be a struggle to get people back, but trust us when we say that advanced appointment scheduling works. Sometimes the answer is that simple. By utilizing the findings of the digital inspections to recommend future services, you can create future appointments for your customers, ensuring consistent repeat business. 

Get Loyal Customers To Leave Reviews

These days, getting the word out about your business looks a little different. Prospective customers are vetting out quick lube places in your area, and you need to set yourself apart from the others. One quick easy way to do this is to get your customers to start leaving reviews .

This not only helps to increase your visibility online, it assists vehicle owners with their decision-making. Honest, objective reviews from real customers could be what causes someone to become your customer over another place. With Review Manager , that process is easy. You can text a link to a customer to prompt them to leave a review. 

Ready To Get Growing? 

Now that you know how to grow your quick lube business, don't wait to start implementing change! Growing your quick lube business has never been easier with BOLT ON TECHNOLOGY. Request a demo with one of our product specialists to see the benefits first hand.

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Oil Change Business

Back to All Business Ideas

How to Start an Oil Change Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 7, 2022 Updated on June 5, 2024

Investment range

$119,550 - $239,100

Revenue potential

$218,000 - $624,000 p.a.

Time to build

Profit potential

$44,000 - $125,000 p.a.

Industry trend

If you’ve got a car you know that oil changes are inevitable, whether you like it or not. That’s why the US oil change industry is worth $7 billion and counting. If you like to tinker with cars, you could start an oil change business, get in on a growing market and make good money. You’ll need to make a large investment, but if you provide great service you could grow your business into a regional or even a national franchise. 

But first, you need to hone your business skills. Luckily, this step-by-step guide will teach you everything you need to know to launch a successful oil change business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an oil change business has pros and cons to consider before deciding if it’s right for you. 

• Good Money – Can do a lot of 10-minute oil changes in one day
• Large Market – Demand is constant
• Valuable Service – Oil changes prevent serious car failures
• High Startup Costs – A space with car bays is expensive
• Saturated Market – Compete with established oil change outlets

Oil change industry trends

Industry size and growth.

• Industry size and past growth – The US oil change industry was worth $7 billion in 2021 after modest growth the previous five years.(( https://www.ibisworld.com/united-states/market-research-reports/oil-change-services-industry/ )) 
• Growth forecast – The US oil change industry is projected to continue to grow for the next five years.
• Number of businesses – In 2021, 25,455 oil change businesses were operating in the US.
• Number of people employed – In 2021, the US oil change industry employed 76,363 people.

Trends and challenges

Trends in the oil change industry include:

• As people start getting back out after the pandemic and driving their cars, demand for oil changes is expected to increase.
• The trend in the industry is toward synthetic oils, which are more eco-friendly and increase fuel efficiency.

Challenges in the oil change industry include:

• Emergence of electric vehicles may soon threaten the oil change industry.
• Leading franchises like Valvoline Instant Oil Change, Jiffy Lube and Grease Monkey are very difficult for new oil change businesses to compete with.

Demand hotspots

• Most popular states – The most popular states for lube technicians are Iowa, New Jersey, and Colorado.(( https://www.zippia.com/lube-technician-jobs/best-states/#iowa )) 
• Least popular states – The least popular states for lube technicians are Hawaii, New Mexico, and Florida.

What kind of people work in oil changes?

• Gender – 6.3% of lube technicians are female, while 93.7% are male.(( https://www.zippia.com/lube-technician-jobs/demographics/ ))
• Average level of education – The average lube technician is high school educated.
• Average age – The average lube technician in the US is 40.4 years old.

How much does it cost to start an oil change business?

Startup costs for an oil change business range from $106,000 to $240,000. Costs include garage space rental, lifts and bays, equipment, and an inventory of oils and filters.

If you don’t know how to perform oil change services, you can find a trade school near you and go through a program. Alternatively, you could work at any quick lube franchise that offers training programs to gain some hands-on experience.

You’ll need a handful of items to successfully launch your oil change business, including: 

• Bays and lifts
• Socket sets
• Impact guns
• Oil filter wrenches
• Oil catches
• Inventory of oil and other fluids such as transmission fluid
• Inventory of oil and air filters

How much can you earn from an oil change business?

The average price for an oil change is about $60. Your profit margin after materials, labor, and overhead should be about 20%. 

In your first year or two, you could do 70 oil changes a week, bringing in $218,000 in annual revenue. This would mean nearly $44,000 in profit, assuming that 20% margin. As your brand gains recognition and you get repeat business and referrals, you could do 200 oil changes a week. With annual revenue of $624,000, you’d make a fantastic profit of $125,000.

What barriers to entry are there?

There are a few barriers to entry for an oil change business. Your biggest challenges will be:

• Funding the high startup costs
• Grabbing market share from the big players

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Step 2: hone your idea.

Now that you know what’s involved in starting an oil change business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research oil change businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile oil change business or a 10 minute oil change business.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as oil changes using synthetic motor oil or fleet services for trucking companies.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

In addition to oil changes, you’ll want to service all vehicle fluids and change filters. You can also offer other replacement parts such as lights or windshield wipers. You could also do tire balancing and other basic vehicle services.

How much should you charge for oil changes?

The average price for an oil change is about $60. Check prices in your area to make sure you’re competitive. After costs for materials, labor, rent, and overhead, you should aim for a profit margin of about 20%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to include sites like TikTok, Instagram, Facebook, and LinkedIn.

Where? Choose your oil change shop location

Location is key when starting an oil change business. You’ll want to choose a spot that’s visible and accessible, with high traffic volume and easy parking for customers.

Convenience is key in this industry, so aim for a location that’s near major roads or highways, and, ideally, within a commercial area with other automotive businesses. It’s also important to consider the size and layout of the space. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Oil Change Station Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “oil change” or “quick oil change”, boosts SEO
• Name should allow for expansion, for ex: “Jim’s Oil Change Center” over “Jim’s Motorcycle Oil Change”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Oil Change Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief overview of your oil change business, highlighting its service offerings, target market, and growth objectives.
• Business Overview: Description of your business focusing on providing quick, reliable oil change services and basic vehicle maintenance.
• Product and Services: Details of services such as oil changes, filter replacements, fluid checks, and other minor automotive maintenance.
• Market Analysis: Analysis of the local automotive service market, customer demand patterns, and vehicle population.
• Competitive Analysis: Evaluation of local competitors, their services, pricing, and customer service strategies.
• Sales and Marketing: Strategy for attracting customers through promotional offers, local advertising, and establishing a strong online presence.
• Management Team: Information about the key individuals running the business, their experience in automotive services, and management skills.
• Operations Plan: Outline of daily operations including service procedures, customer management, and inventory control.
• Financial Plan: Financial projections covering startup costs, operating expenses, pricing strategy, and profitability analysis.
• Appendix: Additional documents like supplier agreements, equipment lists, and detailed service descriptions.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to oil change businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your oil change business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an oil change business. 

Step 8: Apply for Licenses/Permits

Starting an oil change business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your oil change business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Shopmonkey , ARI , or Mitchell1 , to manage your scheduling, inventory, workflows, and invoicing. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Strategic Partnerships with Auto Shops: Collaborate with local auto repair shops or car dealerships to establish referral programs, offering mutual benefits and creating a network of customers in need of oil changes.
• Local SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Frequent Customer Loyalty Programs: Implement loyalty programs that reward customers for repeat business, offering discounts, free services, or exclusive deals after a certain number of oil changes.
• Community Sponsorships and Events: Sponsor local events or sports teams to increase brand visibility, and participate in community gatherings to engage with potential customers directly.
• Mobile Oil Change Services: Offer convenient on-site oil change services for busy professionals or individuals who prefer the convenience of having their oil changed at their location.
• Educational Workshops and Seminars: Host workshops or seminars on basic car maintenance and the importance of regular oil changes, positioning your business as an expert in automotive care.
• Seasonal Promotions and Packages: Introduce seasonal promotions or bundled packages, such as winterization specials or summer road trip packages, to attract customers during specific times of the year.
• Referral Programs with Local Businesses: Establish referral partnerships with other local businesses, like car washes or tire shops, encouraging cross-promotion and expanding your customer base.
• Mobile App for Appointment Scheduling: Develop a user-friendly mobile app that allows customers to easily schedule and manage their oil change appointments, enhancing convenience and customer satisfaction.
• Social Media Contests and Engagement: Run engaging social media contests, share informative content about car maintenance, and encourage user-generated content to create a buzz around your oil change business.
• Vehicle Fleet Maintenance Contracts: Target businesses with vehicle fleets and offer customized maintenance contracts, providing cost-effective solutions for companies in need of regular oil changes for their vehicles.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your oil change business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your oil change business could be:

• Express oil changes with such great service you’ll want to stay longer!
• Let our oil pros get you back on the road in a snap
• Full-service oil changes and engine check-ups

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an oil change business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in oil changes for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in oil changes. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an oil change business include:

• Oil Change Technicians – perform oil change services
• General Manager – staff management, ordering, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Oil Change Business – Start Making Money!

Oil changes may be a necessary evil, but they are indeed necessary, which means demand is big and constant. It’s also increasing. You could ride that growth with your own oil change business. If you have a passion for cars and for helping people, there’s no reason why you couldn’t grow your business into a major national franchise!

You’ve got the business knowledge you need now, so it’s time to roll up your sleeves and launch your successful oil change business.

• Oil Change Business FAQs

Oil change businesses can be extremely profitable. You’ll need to have a good location, do high-quality work, and provide superior customer service so that your business stands out in a competitive market.

You can find a trade school near you and go through a program. Alternatively, you could work at any quick lube franchise that offers training programs to gain some hands-on experience.

To hire and train qualified technicians for oil change services, start by advertising job openings on relevant platforms and conducting thorough interviews to assess candidates’ technical skills and experience. Develop a comprehensive training program that covers safety protocols, proper oil change procedures, equipment usage, and customer service skills. 

Identify the demands and preferences of your target customers and determine which services would complement oil changes effectively, such as tire rotations, filter replacements, fluid checks, and basic vehicle maintenance. Ensure you have qualified technicians with the necessary skills and equipment to perform these additional services efficiently.

Offer competitive pricing and promotions to attract and retain customers, and highlight the quality of the products and equipment you use. Emphasize your commitment to transparency, trust, and building long-term relationships with customers. Additionally, consider leveraging technology by offering online appointment booking, reminders, and digital customer engagement to provide a seamless and convenient experience.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an Oil Change Station Business Name
• Create an Oil Change Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Oil Change Business - Start Making Money!

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Oil Change Business Plan

Tips, Insights, and Resources for an Oil Change Business Plan

A business plan causes you to think about where you’re going and how you’ll get there. It does take some time to create one. It’s something anyone starting a business should create in the early stages of preparation.

Suppose you’re using a business plan writing tool. In that case, you’ll have an advantage because you’ll have a system guiding you through the steps using a question and answer process.

Some questions will come up that you won’t have the answer to, and that’s okay. You can do research or find the answers further down the road. One issue to keep in mind is your business plan can be updated any time changes occur.

Your business plan is your road map and is an important document to keep you on track. It’s a good idea to review it from time to time.

There are business plan writing services that will create your business plan for you, and there are templates you can use. I recommend using a tool like  Liveplan  to guide you through the process and focus on each aspect of your business.

Writing your own business plan allows you to have a strong overview of where you’re going. A well-written business plan will give you the ability to answer any questions you’ll be asked. Such questions can revolve around the following; acquiring equipment, supplies, applying for permits, loans, setting up your company, etc.

One important point to keep in mind is when you apply for financing, a business plan is one of the first requirements, and it does influence your chances for a loan.

Before You Start Writing

Some of the issues to consider before you start your plan for an oil change business consists of the following:

Type of Business

What type of business will you create? As you know, an oil change business has options. Let’s go over three of them.

Quick Lube System:

The quick-lube system offers a fast way to get your oil changed. The customer usually stays in the vehicle and, for a regular oil change, is out the door within 15-20 minutes.

Covenantal Oil Change System:

A conventional oil change system can be compared to an automotive repair shop, where the vehicle is lifted on a hoist. The tech drains the oil, replaces the filter, lowers the vehicle, and adds new oil.

Mobile Oil Change System:

This is relatively new to the quick lube system. The Mobile oil change business requires you to service the customer’s vehicle at their location.

Identifying your business’s setup will save you time because you won’t have to rewrite sections because of how each option operates.

The Main Sections of a Business Plan:

Executive Summary

This is a quick overview of your business and should be a summary that will give the reader the big picture of your business idea.

You may want to include a few main ideas. You will want to revise the summary once you’ve completed your entire plan. You can take highlights from other sections and include them here.

Business Description and Structure

In this section, you’ll include information about your products and services: intellectual property, business relationships such as joint ventures, the legal structure of the company, etc.

Market Research and Strategies

In this section, you’ll focus on your marketing and advertising strategies. You can include any strategies you’re planning and the ones you currently use.

You can also include marketing analysis, sales forecasts, customer testimonials, etc.

Management and Personnel

In this section, you’re going to include your management team, their bios, expertise, and roles and goals.

Financial Documents

This is where you’ll include your financial overview. Some of the information you want to include could be balance sheets, cash flow statements, profit and loss statements, etc.

Final Thoughts:

A new business will differ from an established one. As mentioned earlier, a business plan can and should be updated as needed.

Think of your business plan like a resume. The more job experience you gain, the more you update your resume. This principle can be adapted to your business plan. It’s best to keep it up to date.

How To Write A Business Plan Using These Resources

TheFinanceResource.com – Free Quick Lube Oil Change Business Plan

How to Write a Quick Lube Business Plan [Sample Template] | ProfitableVenture

A Sample Mobile Oil Change Business Plan Template

Quick Lube Oil Change Shop Start Up Sample Business Plan! by Scott Proctor | NOOK Book (eBook) | Barnes & Noble®

For a unique collection of resources to help you start an oil change business, see  How to Start an Oil Change Business Using These Resources.

Privacy Overview

How To Start A Profitable Automotive Oil Change Business

Welcome to the guide to starting one of the most profitable businesses out there – An oil change business.

But, even before we start, you might have this slight doubt as to why we’ve confidently mentioned an oil change business as one of the most profitable businesses out there considering the ever-growing climate change concerns and increasing electric vehicle sales, right?

Well, the global oil change market is here to stay…at least till 2050 where the profits will only keep increasing. Good thing is that growth is so enormous in this business, that after 2050, you can easily pivot your business towards a different line relevant to the future and keep flourishing.

An oil change business is all about convenience. Changing oil is cumbersome and quite inconvenient. That’s where oil change businesses show up. Making life easier and making vehicles smoother to operate.

Since this line of business is directly focused on making life convenient, the business is ever-green in terms of growth and profitability for a long time. Don’t worry, we’ll link you to various statistics and sources that prove why this business will keep flourishing.

Even back in 2020, with many oil franchises bringing in nearly $250,000 a year, as the owner, it is possible to see a net profit of $75,000 to $80,000 a year.

Every business or entrepreneurial venture requires a lot of prior research and dedication to become successful. That’s why this blog will lay before you all the data, precautions and steps to follow to successfully start your own oil change business.

To cover all the related topics, let’s first start from the beginning –

What is an Automotive oil change business?

That’s quite simple!

As the name suggests, an Automotive oil change business essentially provides oil change and lubrication services to a variety of vehicles.

Not just that, but usually, these businesses also provide a variety of other services as well such as windshield wiper replacement, air conditioning recharging, sometimes tire replacement, and many other basic automotive maintenance services.

What’s been noted is that businesses that specialize in oil change services alone, tend to provide this service for a much cheaper price compared to other similar non-specialized garages. Oil change, being a frequent requisite for vehicles, makes these specialized oil change businesses highly profitable.

This is still up to you to decide which would work best for the location you’re setting up. Don’t worry, we’ll cover that part too.

Also, understand that the

What you need to know about an Automotive oil change business?

Note that the Middle East alone holds a major share of about 48.1% of the global oil market and the market is unevenly distributed. (source- Statista.com )

While that’s still the case, the global profits are well evenly distributed and in 2019, saw a massive 8 Billion USD in revenue in the US alone.

Employment rates keep skyrocketing each year with an average 3 % yearly growth rate (except for 2020 where pandemic-related lockdowns had brought the average down).

Now, be keen to note that the growth in this industry is directly proportional to the number of vehicles on the road. More the number, more business. It’s a simple logic that needs to be kept in mind.

Therefore, keeping track of the yearly vehicle purchase rates, especially around your location, can give you an easy prediction of your upcoming growth in a year.

Now, to give some insights, experts came to a conclusion that globally, there were 1.32 billion cars, trucks and buses back in 2016. Leading industry analysts suggest that the number has already surpassed 1.4 billion in the last few years.

Here’s a quick analysis – there were 342 million vehicles in 1976 and in 1996, grew to 670 million vehicles. So if the calculations are done right, then we can expect around 2.8 billion vehicles in 2036 running on our roads. ( source – carsguide.com )

What does this translate to?

This means profit! Heavy profits!

Also, the majority of these numbers will be oil-based vehicles and it’ll go more than 2050 for Electric vehicles to ascertain dominance. So, no problems there.

Industry trend in the automotive oil change industry

Trends in the automotive oil change industry are directly in line with the trends in the general global automotive industry.

What does that mean?

The current trend in the automotive industry is designing vehicles that are built to last . That’s great news as increasing the general longevity of vehicles means more oil change is required annually. That’s good news!

Secondly, the current pandemic automobile market has seen a reduction in people’s willingness to replace and get newer model vehicles . This means the general public wants to keep their current vehicles for a longer period of time. This is once again great news for automotive oil change businesses.

The third important trend is the digitalization of vehicle services and customer experience . Customer experience has now become a major playing factor that determines the success of any business line in the automotive sector.

Customers require quick oil change services, door-to-door oil change services, and many other customer experience-related attributes.

We are seeing a general trend in automotive businesses moving towards ERP software implementation to tackle customer expectations, quick service, streamlining business processes, customer relation, and retention issues. We suggest you check out good ERP softwares for your oil change business.

Skills you need to start an Oil change business?

• Entrepreneurial skills – After all, business is a business and without entrepreneurship, let’s just say business will be harder. This ranges from business management to looking into future trends and making business decisions. It’s all entrepreneurship!
• Automotive knowledge – You will definitely need work experience in this field to know more about vehicles and oil changes.
• Communication skills – Well, of course. You’ll be regularly interacting with customers and the impression you make will decide if they will be a loyal customer or a run-away one.
• Marketing skills –  Marketing is everything, from the way you portray the trust and reliability of your business to the way people end up perceiving your business. It’s all after marketing. Marketing is what will generate leads and customers for your business.

How exactly do we start an oil change business?

Let’s head to the most important part. We’ll cover this in a step-by-step manner that is tried and tested by users around the globe. We’ll break it down to you in simple steps for easy understanding.

Market Potential Analysis

The first step that we could suggest is to thoroughly understand the market in your desired location. Not all locations are suitable for oil change businesses.

Select location

Make sure to choose a location that gets a lot of traffic. This step could be harder because you’ll also need to make sure that you’re not setting up near any other similar oil change business. Especially not close to the “big box” companies. This is important because the location you set your business in plays one of the most important roles in determining the profitability of your business. (especially for oil change businesses).  A series of data needs to be collected before starting in order to understand the size of the market, the number of customers, etc. Customer surveys can be done to understand the customer pain points and needs.

Competitor analysis

They say keep your friends close and your enemies/ competitors closer. This couldn’t have been more true for garage businesses like the oil change business.  Competitor analysis is a great way to understand the strengths and weaknesses. This helps you in understanding your preferred market location better and you can now figure out what advantage customers will have from your business compared to your competitors. You need to have some unique selling point that keeps you apart from the competition. This can be done only when you prepare a competitor analysis chart.

Customer segmentation and target

Know your customers. This is the first step to setting up a successful business. You need to understand the preferences and general income of your expected/ potential customers. The income level of your customers varies from location to location and based on this, you can determine your service prices.

Proper estimation of costs and revenue

Prepare a revenue forecast chart. This gives you an edge.

How to prepare, you ask?

Here’s how-

You’ll need a significant amount of data for this. You would’ve collected most of these during your market research period.

• The average price of an oil change
• How many times a year an average car requires an oil change.
• How many customers are in your location
• Your competitors – who they are, where they’re located, and whether they specialize in cars or other vehicles too (such as motorcycles)

You can find these data on Google or we suggest befriending a repair shop or other oil change shop owners who won’t be a direct competition for you. Take them out for coffee or do anything required to discuss these matters with them. Collect these data.

Now, take our spreadsheet or Google sheets and lay out the data in a meaningful way.

Sales forecast

The best way to set up a financial chart is to create a sales forecast chart. This will give you an average estimate of your turnover.

All you have to do is evaluate the average price for oil change service and multiply it by the number of customers or sales that you’re expecting to make. That should do!

Overhead costs

These are the expenses that are required to run your business on a daily basis. Find out the number of staff you’ll need to carry out the services. Take a look at the price quote from your suppliers, insurance bills, utility, etc to calculate an accurate estimate.

These are some simple ways for cost estimating and revenue prediction. Find out more about this from here .

Feasibility checks like this are extremely important as they reduce risks and the chances of losses.

Finalizing the space for the oil change business

Now’s the time to finalize space and set up your oil change business. Finalize a good name for your business first.

Make sure the location you’ve selected is located either along the highways or in the middle of the city where a high volume of traffic would be expected, of course, keeping in check with nearby similar businesses. Most importantly, make sure to follow the local government regulations.

Once all this is finalized, find a property. This step always involves you making a crucial decision whether to purchase the property or sign a lease. If in case you decide to lease the property, make sure it’s a long-term lease.

Tools and Equipment

Now, you have to decide if you’re going to be an Oil change specialist business or a multi-specialty business.

It’s time to purchase tools and equipment that are related to your business depending on the specialization you chose. It makes sense for oil change businesses to start investing in new-age technology equipped to provide niche services

For an oil change-only business, you’d need equipment like radiator flushing machines, transmission flushing machines, oil drain buckets, oil tanks to hold bulk oil, hoses, cash registers, and small required equipment.

Hiring the right employees

This is the tiring part. Employees make the core functioning of any business. The same goes for an oil change business.

You’ll most definitely need a few oil change technicians and a manager depending on the size of your business. A plus point for you is that you needn’t recruit skilled technicians for this role. Anyone can do this job if taught once. Hence, one less thing to worry about. Phew!

Of course, you’ve got to pay them salaries as well. This part can get tricky but you check out this website to find out the average salary of technicians and managers in your location. The website is called Payscale.com and you can reach out to find salaries for oil change businesses from here .

Hiring apprentices can help develop long-term and meaningful working relationships which can be beneficial for your oil change business. The experienced employees provide stability while the new ones bring freshness and updated skill sets. Encourage them to clear certifications to make your business look more authentic and professional. Employees with diverse skill sets and decent communication skills should be preferred because, in the end, your employees too will be communicating with your customers.

Effective marketing and promotions for the business

Like we have already discussed, marketing is everything. Better your marketing campaigns means more will be the leads generated. A well-planned marketing campaign is what will help you fetch customers when starting an oil change business.

Marketing strategy for an oil change business is similar to marketing any other aftermarket auto repair business. We have a comprehensive step-by-step guide for marketing that is sure to help you in all aspects. Find out about marketing from here .

Invest in customer service

For starting an oil change business, the first thing any entrepreneur should keep in mind is to properly understand customers and serve them accordingly. You must thoroughly understand the pain points of your customers who visit you for oil-changing services.

Oil change businesses can have a waiting room for their customers when their vehicles are being serviced. The list of available services along with their rates can be posted here on a board in the waiting room.

Invest in a good oil change management software that can take care of all aspects that makes your customer experience brilliant. You find out how a good oil change management ERP software can help you with building a great customer experience here .

All these factors need to be kept in mind because you need to once again understand that oil change businesses are repeat businesses. The customer who comes to your garage once needs to be retained for a long time.

Advanced oil change business management software like GaragePlug can automatically take care of building a premium digital experience for your customers and auto reminder features to lock your customers within your business’s ecosystem.

Document a foolproof business and finance plan

It is necessary to document a foolproof business plan on how your business would function, the cash flow, the plans for expansion in the future and other industry-related information. For securing funds for your business, you can either go to a bank or apply for loans from a local lender. Opt for minimum funds to secure a location, tools and working capital enough to sail through till the revenue starts coming in.

Chart relationships with dealers and other organizations

Entering into a long-term partnership with tools and oil vendors is a key to sustainable growth. You must work on this aspect of your business. Vendors who visit garages to exchange tools and offer new products are a great source for referrals and can actually bring in new customers through word-of-mouth publicity. Dealers can help in cross-selling your services.

A good partnership with larger brand vendors can help build reputation and credibility for your oil change business. You can use the name and brand of the larger oil vendors in your garage. The idea is to utilize their big brand to leverage and boost your business.

If you choose to be an oil specialist, try partnering with neighboring repair shops or detailing centers such that you can refer each other when the requirement arises. Group business/ networking is a great way to build and grow your business together.

Overall, your communication skills and your deal-making skills will be put to test here.

Operations Management

Once you’ve set up your business, you need to monitor key aspects of your business for smooth functioning. Some of the KPI (key performance indicator) that can be considered for this process is the satisfaction level of customers, the number of customers visiting, revenues generated and the expenses incurred.

Involving all stakeholders of your business in this process can aid in the easy implementation of corrective actions to ensure sustained and improve KPIs. Future expansion plans and adding more services can only be considered once the present KPIs are consistent and matching expectations.

That’s mostly it!

From starting up your oil change business to finalizing and managing it. We have covered all the major aspects.

But, there are some more important factors that come to play which need to be considered. These are non-specific and are region-based. So, depending on where you’re coming from, these factors will vary globally.

More factors to consider

Business entity.

Business entity refers to the structuring of your business’ ownership. It generally refers to how a business is legally organized to operate.

To make it easier to understand, there are 4 major types of business entities – sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Find the pros and cons of each of them from here .

Business Licenses and Permits

Depending on where you come from, you may need to pay for acquiring an oil change business license and get allowance permits.

Oil change business, being a hydrocarbon servicing company, you may be liable to get an environmental license depending on your region.

Register for taxes

Again, depending on where you come from, you will need to register for a variety of state and federal taxes.

For this, you’ll need to apply for EIN. Find a quick guide to understanding EIN here

There are various tax strategies out there that can benefit you from taxes. A simple Google search will help you find these. Once again, these vary from region to region and only Google can help you understand the tax structuring for your country.

Finance and banking

For the purpose of personal asset protection, we suggest using dedicated business banking and credit accounts.

If in case your business gets in trouble, you will be able to save your personal loan like housing or car loans can be protected from getting sued.

Learn to build business credit that will help you get credit cards and other financial benefits with better interest rates.

Insurance is important too! Just as much as the license and business permits.

Insurance is the only way to protect your business’s well-being if in case something goes wrong. Be double careful!

There are many types of insurances that vary from country to country. A quick Google search is the best way to find out about suitable insurance for your oil change business.

Starting an oil change business is one of the most profitable businesses that one could ever open. With clear proof with statistics, we have proved why.

Although profitable, like any other business, the risks in running a business successfully will definitely apply in this case as well.

You’ll need to approach with caution and take calculated risks, but of course, just like any other business.

You’ll need to hone your entrepreneurial skills to succeed in this venture.

But, in this blog, we’ve covered almost each and every aspect there is to start an oil change business.

With these strategies, your business plans are good to go. All you have to do is work on the implementation, take care of the budget and keep tabs on the returns.

Talk to our support team and we’d be more than happy to help you out with your oil change business.

There’s a chat icon to the bottom right side of the screen. Don’t be shy. Ping us and we’d get back to you in less than 5 min.

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Starting a Mobile Oil Change Business vs. Brick and Mortar Oil Change Shop

Opening an oil change shop can be a lucrative business if done in the right location with the right business plan, operational execution and customer acquisition strategy. The big question many individuals have is whether to open a physical location or a mobile business. There a pros and cons to opening a mobile oil change business so let’s break it down.

Benefits to Starting a Mobile Oil Change Business:

Low Start up Cost

Starting a mobile oil change business is much less expensive because you don’t have to spend money on a physical storefront, lifts, signage, and other equipment needed for a brick and mortar location. Instead your largest cost is a vehicle, usually a truck or commercial van so that you can hold more inventory. Besides that you will incur your traditional administrative costs to set up a business and will need an initial investment in inventory such as filters and oil. The cost to setting up your mobile oil business is fairly low, however you will face challenges that brick and mortar shops don’t have.

Low Operating Costs

Compared to a physical business the operating costs of a mobile business are much lower. You don’t need to worry about rent, utilities or machinery upkeep. Instead your operating costs will consist of payments on your vehicle (lease or loan), marketing, inventory, light machinery and software. Your largest ongoing costs will be your vehicle and marketing. Since you don’t have a storefront to drive customers into your business you will need to find other ways to advertise your service. Especially in the early stages of your mobile oil change business your marketing spend will be significant until you can build a strong client base.

Work your own hours

Unlike having a store you can book appointments based on your schedule. This allows you to book clients when you want to work and take days off when you feel the need. This sounds great, however keep in mind that customers can be picky about appointments as well so you will need to decide how badly you want their business and might have to tailor your schedule around your customers.

Customer Convenience

For the most part, oil change shops have similar value propositions for their customers. The huge advantage you would gain as a mobile oil change business is convenience. Your customers could get an oil change from you at home or while at work, that’s a great differentiator that will help you stand out in the market.

Negatives to Starting a Mobile Oil Change Business:

No physical location

Without a physical location you don’t get the same exposure so customers won’t be able to stumble upon your shop. This means you will need to spend money on marketing initiatives to let customers know who you are any why they should hire you for an oil change. In addition customers trust the established brands and shops that have a store fronts. Since the mobile business is still in its infancy, many customers are still cautious about who is working on their vehicle and may feel sceptical of a mobile operator working on their vehicle.

Travel Time

Since you go where the customer is you would need to travel between jobs. This takes valuable time and forces you to incur travel costs. This is the reality of the business however you can reduce your travel costs by scheduling jobs that are close to each other for certain days. Ideally you would also lock down fleet clients like rental car companies so that you can pull up to their office and service multiple vehicles at one time.

Those are the quick pros and cons of running a mobile business. Let us know what your thoughts are through our contact form.

It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
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1.0 Executive Summary

The purpose of this business plan is to raise $200,000 for the development of a quick lube oil change shop while showcasing the expected financials and operations over the next three years. Quick Lube Oil Change, Inc. (“the Company”) is a New York based corporation that will provide oil changing and minor vehicle repairs to customers in its targeted market. The Company was founded in 2009 by John Doe.

1.1 Products and Services

Quick Lube Oil Change will specialize in delivering high quality oil change services at a reasonable price to the Company’s market. The Company will provide these services for under $50.00 and within a thirty minute time frame. Additionally, the business will provide minor automotive repair services for cars that need a quick fix. These minor automotive repair services are expected to account for 30% of the gross revenues generated by the business. The third section of the business plan will further describe the services offered by Quick Lube Oil Change, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

Quick Lube Oil Change seeks to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners within the target market.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the automotive repair industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Quick Lube and Oil Change, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Quick Lube Oil Change, Inc. requires $200,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Quick Lube and Oil Change, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Quick Lube and Oil Change. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the oil change and minor mechanical services offered by Quick Lube Oil Change, Inc.

3.1 Oil Change and Lubrication Services

The Company will actively provide oil change services in each of its facilities for vehicles. These services will include a full oil changes and other fluids check.

3.2 Minor Automotive Repair Services

The Company will also provide additional services such as on-the-spot minor repairs for a vehicle’s air conditioning, brakes, or hoses. Quick Lube Oil Change, Inc. will also provide cleanings, basic auto maintenance, and emergency repairs for its customers as part of this menu of services. The Company does not intend to offer expansive vehicle repair services as the facility will not be completed for complete automotive diagnostics and repairs. However, studies completed by the quick lube industry have founded that the addition of minor automotive repair services significantly increase per ticket revenues and provide locations with a more steady stream of clients.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the quick lube industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, oil change facilities often operate with great economic stability as people will continue to need to have their vehicle’s oil changed despite deleterious economic climates.

4.2 Industry Analysis

The quick stop oil change service industry has over 7,200 establishments that operate within all fifty states. Each year the industry generates more than $2.7 billion dollars and provides jobs for more than 58,000 people. According to the US Economic Census average annual payrolls have exceed $778 million dollars per year on average. The industry has grown tremendously over the last ten years with more franchised oil change facilities starting in every location in the United States. This trend is expected to grow as transportation has increased in step with the greater production of the United States Economy. On average, the industry grows at a rate of 37.1% every five years. This growth is attributed to a marked increase in the growth of the country’s GDP.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Quick Lube Oil Change intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of Quick Lube Oil Change.

5.1 Marketing Objectives

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertisements.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow Quick Lube Oil Change, Inc. to easily target drivers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Quick Lube Oil Change, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as oil change facilities, now the Internet to conduct their preliminary searches. Mr. Doe will register Quick Lube Oil Change with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the Company’s operations, location, preliminary pricing information, and contact information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the oil change and minor automotive repair services that the Company is selling.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• Quick Change Oil Lube, Inc. will have an annual revenue growth rate of 10% per year.

• The Owner will acquire $200,000 of debt funds to develop the business.

• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are not sensitive to the overall market condition. People continue to drive regardless of the general economic market. In times of economic recession, Management expects that the decline in revenues will be minimal. As such, the business is relatively immune from changes in the general economy, and the Company would need to have sales decrease by more than 30% before the business is unable to satisfy its month to month financial obligations.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

Bakersfield Site

7905 Downing Ave, Bakersfield, CA 93308

Delano Site

621 High St, Delano, CA 93215

Fresno Site

2917 E Annadale Ave, Fresno, CA 93725

October 24, 2019

3 Keys to Running a Successful Quick Lube Business

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. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service.

On average, 2/3 of business comes from repeat customers. In today’s competitive marketplace, attracting new customers can be very difficult. It is often easier and less expensive to retain an existing customer than it is to attract a new one. Great customer service is one of the most important factors in retaining customers and is the main differentiating factor across quick lube businesses. There are many options for customers getting their oil changed, but not all places provide great customer service. Keep in mind, every employee at your facility impacts the customer’s experience.

The goal is to have every customer leave with a satisfied experience. However, that is not always the case, so it is useful for your business to think not only of reviews from satisfied customers, but also from dissatisfied customers. Satisfied customers will most likely recommend products and services to family, friends and co-workers. A personal recommendation is one of the most effective forms of advertising and is the least expensive. On the other hand, dissatisfied customers will not return to purchase products or services in the future. They will also share their negative experience with their family, friends and co-works which can negatively impact sales revenues. As an employee at your facility, you influence the satisfaction level of every customer.

Overall, great customer service reinforces your brand and builds trust. You may ask why brands are important? Brands are important because they are recognized, set customer expectations and differentiates you from competitors. By providing great customer service, you create the trust that is needed for your customers to return.

Be sure to check back next month for our blog on how you can deliver great customer service!

About Us: If you own or are thinking of opening a quick lube franchise or oil change facility, we offer the products and services necessary to make your business a success! Whether you’re building from the ground up or rebranding your current store, our specialists can guide you through every step along the way.

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