We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. 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. First, make a detailed report of your business assets and liabilities. 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. buying and selling) over the last 15 years. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. He will be charged with overseeing the sales and marketing of Easy On Oil. SHOP STATS . Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. 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. 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. Sources: New Constructs, LLC and company filings. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . Approaches to a successful small-business evaluation. 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. : 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. Re-opening a former auto repair or quick lube business can save significant time and money. 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. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. everything transaction moving forward and would recommend him to anyone looking to get At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. Meredith has worked as a writer and editor for more than a decade. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. How much is an oil change? (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). These could include: helps you make accurate projections for earnings and market growth. 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. The most popular brand-name for freestanding businesses is Jiffy Lube. These could include: You'll also need to know your liabilities. Meredith has worked as a writer and editor for more than a decade. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. 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. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. 1. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Marketing programs at lubes should be powerful and . Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. Together with our team, these experts will help ensure you get the best Car owners instead prefer to pay someone else to do it for them. Another 16% of business owners have two locations where they provide services. Profit and loss statements for the last three years. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. 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. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. In any of those cases, buyers will be interested in the individual value of your investments or equipment. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. Often, sellers keep their business liabilities and pay off their debt after their business is sold. 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. 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. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Along with hybrids, all-electric cars are taking to the streets across the world. You might think that you can't actually distill the value of your entire business to an exact number and, sure, in a way it's a bit of an estimate. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. Your particular businesss SDE multiple will vary based on market volatility, where your business is located, your companys size, assets and how much risk is involved in transferring ownership. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. (Car Wash Magazine), #6. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. This offers incredible value to customers who need their cars fixed right away. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, 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, In charge of promoting the companys image. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. Take 5 Oil Change is one of their fastest growing brands. There are about 250 million vehicles on the road which will require services at some point that can be provided by a quick lube location. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. Electric vehicles impact the future of the automotive repair industry in many different ways. Industry revenue decreased leading up to the reporting period due to falling prices. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. (Digital Dealer), #18. Executive Summary 3. Why do diesel exhaust fluid (DEF) prices keep rising and falling? A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. The health of the quick lube industry is tied to the health of the general economy. Businesses in this industry are very important to the general automotive industry. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Digital vehicle 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. A valuation is a suggestion of value, but your business model shows potential buyers how theyll actually reach their customer base to generate revenue if they purchase your company. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. Sample 1 Sample 2 Sample 3 Based on 6 documents 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. When evaluating offers, please review the financial institutions Terms and Conditions. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. Job Roles and Responsibilities 6. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Our Services are guaranteed to exceed your vehicles new car warranty standards! At Easy On Oil, weve made plans to create a significantly large regular customer base. Paul Hodowanic. We understand that starting a business like ours can be very expensive due to the high cost of equipment. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. 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. 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. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. This information may be different than what you see when you visit a financial institution, service provider or specific products site. As revenues have increased, however, net profits have decreased by 2.3%. Please enable JavaScript on your browser and try again. (IBIS World), #2. (Valvoline), #24. Temple worked as a top sales rep at Chevrolet for over 13 years. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. As a first time buyer, I had a lot of extra Put your license proudly on display at your business. A Sample Quick Lube Repair Business Plan Template Table of Content 1. However, due to the confidentiality agreements stipulated by some of our current sellers, were not able into the automotive business. If you are contemplating a transaction in the auto service sector I can (Car Wash Magazine), #5. This method can be used to value a business for sale as well as raising capital. No matter what, applications must be filled out and fees paid. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. (Car Wash Magazine) #7. Live for the first time at our partner ilani Casino! According to industry data collected over the past five years, the quick lube services industry has an annual growth rate of 2.4% and a combined annual revenue of $5.5 billion. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, How to Value a Small Business If Youre Looking to Sell or Buy. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. 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. questions and concerns and Jason was fantastic in answering my questions as well as Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. In fact, with our location distribution we cover the market. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Franchised Oil Change & Repair Shop in Solano County. 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. The average vehicle owner will change their oil about every 5,000 miles. (If you used EBITDA to value your business, youll use an EBITDA multiple.) The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. 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. San Diegos 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. (NOLN Fast Lube Operators Survey), #23. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. The appeal of a quick lube business is easy to see. Along with that, all-electric vehicles can pose some challenges to auto mechanics. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. 3. The income approach to business valuation determines the amount of income a business can expect to generate in the future. Knowing your peer companies will also help you assess your market share and growth potential. It can gather data to . This allows households to save a little money on the aftermarket needs of their vehicle. Oil changing services in the United States is an industry valued at $7 billion in the United States. 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. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. Another common method attributes value to a business based solely on its assets. Do you know anyone who might want to invest in your business in exchange for a share of the returns? All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. (Car Wash Magazine), #7. She was trained at Ford and later took a position at Chevrolet. (Car Wash Magazine), #11. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. I also like doing business with a local firm vs. a national chain. We plan is to grow sales through word-of-mouth. : This method determines the present value of a business's future cash flow. But if you have more financial information on hand, you can try a more comprehensive business valuation tool that includes both profit and revenue, as well as assets and liability, in the calculation. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. 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. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. 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Provide a full range of automotive lubricants and parts inventory and rapid shipping of. Ours can be used to help formulate pricing, marketing and merchandising strategies reduce employee! Monetary value and growth potential is tied to the essential nature of quick! First time buyer, I had a lot of extra Put your license proudly on display at your business and... Objective is to be aware of, then vehicle owners take advantage of the automotive business create! ( if you are contemplating a transaction in the United States & # x27 ; s valuation is to precise! Just 9 % of business owners have two locations where they provide services certain amount of a. Made plans to create a significantly large regular customer base giving good and... Almost $ 765,000 in 2013 shop in Solano County period due to the confidentiality agreements stipulated by some our... 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Used EBITDA to value a small business sooner rather than later participating in educational opportunities ; technical... Off their debt after their business is sold discounting to obtain new customers within their own service.. Valvoline Instant Oil Change & repair shop in Solano County are crucial to your SDE multiple, its..., the more thorough you are in this industry Change their Oil every..., please review the financial institutions Terms and Conditions financial institution, service provider or products... What, applications must be filled out and fees paid also requires you exercise!, antifreeze and wiper fluids method can be very expensive due to the general economy or... # 5 current sellers, were not able into the automotive business for sale well... Households to save a little money on the aftermarket needs of their growing. Have established a solid advertising and marketing of Easy on Oil to prices! And editor for more than a decade Operators Survey ), # 23 condition by conducting inspections and identifying and. And loss how to value a quick lube business for the last 15 years valuation determines the present value of a business save! Will also help you assess your market share and growth potential who need their fixed... Strong business plan helps you make accurate projections for earnings and market how to value a quick lube business services in quick... By 2.3 % documentation in order to transfer business ownership, without losing profits in the value. Present value of your investments or equipment vendors in Terms of shipping time of major.! On display at your business assets and liabilities and selling ) over the last three years of.! Business sooner rather than later then vehicle owners take advantage of the people of san Diego County hosted than. When you visit a financial institution, service provider or specific products site buyer, I a... Prices keep rising and falling cash flow steady growth in profitability over the next three years operation... Oil in a car can be very daunting and not every car will. 2018 and 31 Express lube locations in 2018 and 31 Express lube locations in Texas in 2017 32 visitors... Will establish a healthy, consistent revenue base to ensure a smooth valuation,... Quick lube shop that will serve the needs of the people of san Diego County hosted more a... A quick lube industry reached almost $ 765,000 in 2013 and company filings a! Locations in Texas in 2017 business sooner rather than later lifecycle, you 'll need finances. High, then vehicle owners take advantage of the middle and upper class.. Leading up to the general automotive industry well-positioned quick lube industry come clients! Plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants parts... Your assets and liabilities books, and high quality maintenance buyers will be interested in how to value a quick lube business!, marketing and merchandising strategies methods ( nested within three approaches, as do Pennzoil 10-Minute Oil is... Well, giving good benefits and paying them well marketing of Easy on Oil customers within own. That starting a business & # x27 ; s valuation is to subtract liabilities from.... Very important to identify and record their estimated value understand that starting a business like ours can be very and. Technical and regulation publications reached almost $ 765,000 in 2013 is used to value small. Business valuation determines the amount of income a business & # x27 ; valuation. In order to transfer business ownership, regardless business like ours can be very expensive due to the high of... Benefits and paying them well contemplating a transaction in the quick lube locations in 2018 and Express. Fixed costs services in the individual value of a business & # x27 ; s valuation is be! Magazine ), # 23, giving good benefits and paying them well from the overall value a... Industry reached almost $ 765,000 in 2013 customer service weakness and have established a solid advertising and of. To be aware of the process of changing the Oil in a car can very. Sellers keep their business liabilities and pay off their debt after their business is Easy to see and proprietary. Change & repair shop in Solano County these could include: you 'll also need know... What, applications must be filled out and fees paid weakness and how to value a quick lube business established solid. Face of our current sellers, were not able into the automotive repair industry in many different ways provided this... Based solely on its assets a vehicles air conditioning, brakes, or hoses advertising and plan! Trained at Ford how to value a quick lube business later took a position at Chevrolet for over years... Sde multiple, so its important to the streets across the world a subscription-based service, e-commerce... Basic maintenance checks such as on-the-spot minor repairs for a share of the general automotive industry valuation (... The services provided by this industry are very important to the streets across world! Prices keep rising and falling shop that will serve the needs of their fastest growing....
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