Starting a Mechanic Shop? Four Things to Consider

If you’re a skilled and experienced mechanic but have grown tired of working for someone else, starting your own mechanic shop could be a great move.

You’ll have the freedom and flexibility to manage your shop the way you want, and you’ll retain 100% of workshop profit — but if you’re thinking about going out on your own and starting a mechanic shop, there are a few things you need to consider first.

1. Administration involved with starting a mechanic shop

There are a few administrative tasks you’ll need to take care of to be able to operate a business in Australia.

While requirements vary based on your location, this generally includes:

• Deciding on a business structure
• Registering for an Australian Business Number (ABN) and register for Goods & Services Tax (GST)
• Setting up accounting and record keeping systems
• Obtaining required licenses or permits, and ensuring you’re complying with any legal and tax obligations
• Organising any insurance you might need

2. Setting up your workshop

Once you’ve found a suitable location for your mechanic shop, you’ll need to think about the fit out and what equipment you’ll need.

To build a fully functional workshop, you may need to purchase:

• vehicle lifts
• an air compressor
• jacks
• a battery charger and jumper kit
• oil and transmission fluid caddies
• an engine hoist
• a brake lathe
• a strut compressor
• a press
• an air conditioning machine
• a workbench and vice

It’s also important to think about how you’ll set up your customer service waiting area to ensure its well-presented and comfortable.

3. Planning how you’ll build the business

Establishing a business and marketing plan prior to opening your mechanic shop will act as a guide to help you build a strong customer base and make your shop a profitable venture.

Don’t forget to consider factors such as your service model, sales and marketing strategies, growth plan and financial targets.

4. Know how you’ll manage day-to-day operations

Every mechanic shop needs a reliable software system to simplify operations. Once business picks up, your reliance on your systems will increase exponentially, so it’s crucial to invest in a quality system that includes everything you need in one place — like Garage Software.

An all-in-one workshop management system incorporates your point of sale, invoicing, customer database, inventory, stock ordering, marketing and staff job tracking. Garage Software ensures everything in your shop runs smoothly and efficiently.

Find out more about our mechanic shop software or get started with a free trial of Garage Software.