Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. If you want to take the income approach, you can choose between two commonly used valuation methods. Meredith has worked as a writer and editor for more than a decade. More on liabilities in a bit. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. For a full breakdown of the quick lubes we have for sale, as well as a 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. In fact, most quick lube operators choose to franchise for this reason. We believe everyone should be able to make financial decisions with confidence. Full range of Auto Lubricants and Repair Parts store. People will continue to drive regardless of the general economic market. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. The most popular has been around for a while, hybrid-electric cars. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. Most of our competitors have adopted point-of-sale systems in their stores. 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. Do you want to start a Quick Lube company and need to write a business plan? Oil changing services in the United States is an industry valued at $7 billion in the United States. Maintains vehicle records by annotating services and repairs. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. A Sample Quick Lube Repair Business Plan Template Table of Content 1. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. Sally Lauckner is an editor on NerdWallet's small-business team. Looking to make a smart automotive business investment? Each uses a different aspect or variable of a business to calculate its numerical value either a businesss income, assets, or using market data on similar companies. 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. 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. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. To reach our local customer base, we will employ a marketing manager. But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. Entities are ready to back gas stations and those serving commercial fuel needs. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. Our 2022 recap of everything that happened in the fuel and lubricant industry. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Put your license proudly on display at your business. Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. In 2011, 31% of consumers preferred a premium product. Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. Over my over fifty year career, I have had the privilege of working with many other Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. 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One Independent Quick Lube w/RE in East-Central South Dakota! Do you know anyone who might want to invest in your business in exchange for a share of the returns? Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Our plan at Easy On Oil is to service the middle and upper income markets. In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. Along with that, all-electric vehicles can pose some challenges to auto mechanics. person. Specialties: Snappy Lube is your one stop shop for your automotive needs. (Valvoline), #24. 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. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 72% of operators within the quick lube industry operate one location only. 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.). If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. If youre interested in learning more about the automotive business buying process and how our expert These businesses are also not involved in body, paint, interior or glass repair. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. into the automotive business. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, In fact, with our location distribution we cover the market. www.ratchetandwrench.com is using a security service for protection against online attacks. A valuation represents your companys total worth. You will be redirected once the validation is complete. Familiarity with your industry is crucial for both buyers and sellers. Jiffy Lube is a leading provider of automotive preventive maintenance. SWOT Analysis 7. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Some of them also have electronic work order systems available amongst their various service centres. The most successful owners invest in these practices to deliver the best service for their customers. 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. take status photos of any vehicle part. They are responsible for the direct employment of almost 90,000 people. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. December 16, 2021. It's called Jiffy Lube Multicare. We will give a guarantee on all our repairs for a certain amount of miles or time. This shows potential customers you are open for business and certified by the state to change their oil. The quick lube industry focuses on providing oil changing services for automobiles. In the United States, about 450 million oil changes are performed each year. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. Do not sell or share my personal information. So how do we make money? 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. Approaches to a successful small-business evaluation. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. Executive Summary 3. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. Another 22% of operators combine automotive repair with quick lube services. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. Check out our Website for Services and Coupons! Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Youll use an EBITDA multiple. around for a share of the economic... 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