Our Business location provides us with a vast market and many opportunities. Regularly getting the oil changed is one of the most important maintenance tasks you can do for your car, and fortunately, it's one of the cheapest. It can gather data to . Our goal is to capture a majority of the market in little or no time. 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. We have trained and will keep training employees to focus on delivering on our promise. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Over my over fifty year career, I have had the privilege of working with many other 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. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. As you can deduce from its name, the market approach to valuing a business determines a companys value based on the purchases and sales of comparable companies within the same industry. Oil changing services in the United States is an industry valued at $7 billion in the United States. Just 9% of customers come from a 2-mile radius. Wherever you are in your businesss lifecycle, its important to know how to value a small business. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. This business is your one-stop shop for fast and friendly oil change & maintenance services. (Car Wash Magazine), #11. In fact, most quick lube operators choose to franchise for this reason. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. This method can be used to value a business for sale as well as raising capital. On the sell side, a deep understanding of your industrys trends can help you reach an informed valuation that reflects your business assets as well as the current market. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. Subscribe to our Blog. Typically, more than 70 percent of revenue is from oil changes. A well-run business will make transitioning ownership, without losing. 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. This does come at a cost though. Check out our Website for Services and Coupons! Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. 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. The work done here is every bit as good or better than the nationals, the price seems at least a bit better, and I had a better experience overall. Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. She has over a decade of experience in print and online journalism. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. Franchised Oil Change & Repair Shop in Solano County. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Before even thinking about how to value a small business for sale, both sellers and buyers should organize their financial records thats crucial for accurate calculations. For a full breakdown of the quick lubes we have for sale, as well as a add technician notes to the photos. Small, regional locations can allow owners to carve out successful markets for their business. Snappylubeinc.com Established in 1989. Groups exist on the state and federal level to help with seed money. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. So, sellers should find out as much as they can about companies that are similar in size, business model, and revenue, if that information is available. First, though, you have to get your financial information in order. 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. The average age of a vehicle owned in the United States is 11.4 years. 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. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. You'll need a minimum of $50,000 cash as a startup fee. Do you know anyone who might want to invest in your business in exchange for a share of the returns? This is why several other methods exist. For the average business, they account for 60.7% of total expenses. Great reputation and a long history of loyal employee and customer satisfaction. In comparison, leasing costs are just 9% of the overall expenses for the average location. (Car Wash Magazine), #5. (Car Wash Magazine), #7. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Protect your EATS system with Delo 600 ADF. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. Long wait for services and parts wont b entertained at East On Oil as we strive to offer the best service and product in our market. So, most maintenance on electric cars will be more software driven. : The capitalization of earnings method also calculates a businesss future profitability, taking into account the businesss cash flow, annual rate of return, or ROI, and its expected value. Short overview of your business or personal finances. There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. The largest technological advancement in the automotive industry is the introduction of electric vehicles. 89% of quick lube locations offer a transmission fluid drain and flush service in the United States, with an average cost of $107.60 per service. Every state has a different process when it comes to business licensing. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. Car owners instead prefer to pay someone else to do it for them. The average vehicle owner will change their oil about every 5,000 miles. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. We will give a guarantee on all our repairs for a certain amount of miles or time. 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. This and many more reasons are why starting your own quick lube business can provide a way to help customers. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. Regardless of the option you pursue, get the word out with our help. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. The appeal of a quick lube business is easy to see. (IMR Automotive Research), #9. Jiffy Lube International. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. To start off, there are two major types of electric cars that are on the roads today. The visitor industry provides employment for more than 160,000 people. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. Mike has been instrumental in helping me successfully complete 4 transactions (both For public companies, annual and quarterly financial reports are typically accessible online. NerdWallet's ratings are determined by our editorial team. Later, too, you can use this list to create an overview of your companys value for potential buyers. Another 16% of business owners have two locations where they provide services. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. This segment comprises approximately 25% of our revenue at Easy On Oil. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change KEYWORDS oil change Operations Quick Lube. #1. 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. They are responsible for the direct employment of almost 90,000 people. If so, read on about what it takes to become one. Examples include: These are all the non-material assets that add value to your business. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. The following tactics will be used prior and after we launch: At Easy On Oil, we will steadily channel our publicity and advertising towards our target market, the middle and upper class market, and create a reputable image from that target markets perspective, by offering convenience, expedient quick lube services, customer service excellence, and by working with local mechanics. These conservative assumptions make for a more accurate estimate of real risk. The profitability of individual companies depends on convenient location and good marketing. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Buyers obviously won't need all of these documents, but they should still review their own financials. 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. A Sample Quick Lube Repair Business Plan Template Table of Content 1. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Joe handled every aspect and obstacle that presented itself throughout the sales Ensures that the shop is secured at all time, Patrols around the building on a 24 hours basis, Handles any other duty as assigned by the manager, 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. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. Contact us today! Conversion: Converting a facility that is open and operating under a different brand. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. 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. When evaluating offers, please review the financial institutions Terms and Conditions. Like EBITDA, business owners calculate SDE to determine the true value of their business for a new owner, so your SDE will include expenses like the income you report to the IRS, non-cash expenses whatever revenue your business actually generates. More on liabilities in a bit. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Premium products from their preferred quick lube Repair business plan Template Table of Content 1 businesss lifecycle its! 2016, 45 % of consumers asked for premium products from their preferred quick store! 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