Buy an auto repair shop in Florida – Get Expert Tips!
Interested in buying an auto repair shop in Florida? Over the five years to 2019, the auto mechanics industry has experienced steady revenue growth. People are holding on to their cars longer due to their increased lifespan. Older automobiles require more repairs and maintenance; therefore, the billion-dollar industry in the Sunshine State is thriving. Going into 2020, this trend is expected to continue.
The Business Exchange of Florida in association with Florida Business Brokers LLC has helped thousands of entrepreneurs and investors buy and sell businesses in the Sunshine State. We specialize in small to multi-million-dollar companies and commercial real estate investments. To find out more about our services, drop us an email or call us now to set an appointment.
The auto repair industry is highly competitive. But there’s still room for plenty for new players to become a part of this lucrative industry and earn substantial profits. But there are several factors that you must consider before you dip your feet in the water. Here are three expert tips you should follow when buying an auto repair shop in Florida to get the best returns:
3 Expert Tips to Consider When Buying an Auto Repair Shop
Expert Tip#1: Location, Location, Location
The catchphrase “Location, Location, Location!” isn’t limited to buying real estate properties. The success of your auto repair shop is also tied to the location that you choose. Ideally, you should find a shop close to the main road and visible to prospective customers. This way, you will attract more customers to your shop.
Moreover, find a facility that has plenty of space so you can expand in the future. Having a large area will give you the freedom to introduce more services as you go. You can also create a lobby area in which clients can wait. It will improve your clients’ experience and will result in more repeated business. Remember, return business is huge for auto repair shops.
Expert Tip#2: Establish your needs
Once you find the perfect location, it’s time to establish what you want to accomplish with your new venture. Preferably, you’ll purchase an existing auto repair business to accelerate your business. So, think about the resources you’ll need to gets started. First, identify specific mechanical skills you want to acquire to provide excellent service to your client.
Do you have a skilled workforce, or you need to hire additional mechanics to fill gaps? Can you commit full-time to the business or need to hire personnel to supervise the operations? Do you have sufficient working capital to sustain operations? These are a few questions that you need to address before starting your search to ensure the financial viability of your business.
Expert Tip#3: Doing your due diligence
After establishing your needs, it’s time to narrow your search and shortlist 3–5 auto repair shops that fit your business model. Choose a reputable platform like TBX Florida for genuine investment opportunities. Moreover, carry out proper due diligence to determine the profitability of each option and to avoid any hidden, unwanted surprises.
Some key aspects you should consider are brand recognition, revenue and profits, growth, existing clientele, condition of the facility, ties with insurance companies, the status of lease, and scope for expansion, among others. It will help you evaluate how well a particular repair shop matches your needs and make an informed decision.
These expert tips, followed by comprehensive business analysis, will enable you to find the best investment opportunities available in Florida. Buying an existing auto repair shop will allow you to generate revenue from day one. Work with an experienced broker like TBX Florida to make sure you find the best deals available in the Sunshine State.