A new auto shop business would require aspiring business owners to spend at least $50,000 in initial costs, depending on where you live in the U.S.
These expenses include the cost of buying machinery such as Baileigh ring rollers and other tools from suppliers like JMC Equipment. You would also need to find a business location, which costs differently if you intend to buy or rent your own space.
Car Shop Expenses
You should expect to spend up to $29,000 for equipment and tools. This includes between $5,000 and $10,000 for a diagnostic machine. A decent tool set costs around $15,000 while a car lift with installation is worth around $3,700. You would also need to spend around $4,000 in annual insurance costs.
Any business owner wants to set up shop in a highly visible place, but these places normally cost more. If you’re only planning to rent a location, be ready to spend up to $15,000. The size will also be a factor for the overall price tag. Other expenses are not immediately apparent like hiring people to manage your shop.
Owners of an auto shop business are among 15 million self-employed Americans. This represents around 10% of the country’s workforce. While hard work and determination are important for any business, the place you where you live also contributes to your success.
An analysis showed that the top five best U.S. cities for starting a business comprise Oklahoma City, Okla.; Austin, Texas; Sioux Falls, S.D.; Missoula, Mont.; and Durham N.C. The rankings were based on each city’s business environment, access to resources and the cost of doing business.
Opening a car shop requires not only money but also a significant amount of your time and effort. Be sure that you deal with legitimate equipment suppliers, preferably those who offer quality supplies at an affordable price.