Regardless of the option you pursue, get the word out with our help. This does come at a cost though. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. Here, business assets include anything that adds value to your company. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. As a first time buyer, I had a lot of extra 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.). Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. to post every listing on the site. Over my over fifty year career, I have had the privilege of working with many other There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Temple worked as a top sales rep at Chevrolet for over 13 years. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. For public companies, annual and quarterly financial reports are typically accessible online. Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. Another 22% of operators combine automotive repair with quick lube services. What often separates one lube shop from another is its creative marketing strategies. (IBIS World), #2. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Most of our competitors have adopted point-of-sale systems in their stores. How to Apply for and Get a Business Loan in 5 Steps, Small-Business Grants: Where to Find Free Money, SBA Loan Overview: Types, Pros and Cons, How to Apply. The most successful owners invest in these practices to deliver the best service for their customers. The two PEGs that own Express Oil LLC now have more than 700 stores. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. The service requires full JavaScript support in order to view this website. demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. Sources: New Constructs, LLC and company filings. To reach our local customer base, we will employ a marketing manager. A well-run business will make transitioning ownership, without losing. So, established businesses with stable profitability often use this valuation approach. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. assign a green, yellow, or red status to each part. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. More on liabilities in a bit. add technician notes to the photos. The scoring formulas take into account multiple data points for each financial product and service. When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. In any of those cases, buyers will be interested in the individual value of your investments or equipment. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. 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. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. possible purchase price and outline opportunities for increasing future revenue. This influences which products we write about and where and how the product appears on a page. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Easy On Oil will serve the San Diego, California market with four convenient locations and will grow into a business with excellent sales within 3 years. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. Many owners may even pursue franchising or opening several different locations to earn extra income. 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. Together with our team, these experts will help ensure you get the best (Statista), #21. Also, our wide range of auto lubricants and repair parts inventory that is (nearly) never out of stock will further cement our place as a reckoning force in the industry. She was trained at Ford and later took a position at Chevrolet. 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. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. 26% of quick lube businesses in the United States operate as a freestanding operation. 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. I also like doing business with a local firm vs. a national chain. explaining everything in detail. (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.). 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. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. Even though quick lube locations are seeing a reduction in the number of cars being serviced each day, the number of oil changes being performed is rising. 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. I will only use Jason for (Car Wash Magazine) #7. Our partners compensate us. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Just 9% of customers come from a 2-mile radius. At Easy On Oil, weve made plans to create a significantly large regular customer base. In 2011, 31% of consumers preferred a premium product. Also, at Easy On Oil, we understand the need to develop an ethics statement describing our unchangeable stand on honest, trustworthy work. ), 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. Jiffy Lube is a leading provider of automotive preventive maintenance. So, sellers should find out as much as they can about companies that are similar in size, business model, and revenue, if that information is available. Some of them also have electronic work order systems available amongst their various service centres. If so, read on about what it takes to become one. Car owners instead prefer to pay someone else to do it for them. (Business Wire), #16. Subscribe to our Blog. 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. When evaluating offers, please review the financial institutions Terms and Conditions. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. This segment comprises approximately 25% of our revenue at Easy On Oil. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Internet companies or buyers interested in the tech sector can use online directories like Crunchbase and platforms like AngelList, which provide information about startups, funding, investors, and more. Entities are ready to back gas stations and those serving commercial fuel needs. 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. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. 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. It is part of the San DiegoTijuana conurbation, the second-largest trans-border agglomeration between the U.S. and a bordering country after DetroitWindsor, with a population of 4,922,723 people. The average age of a vehicle owned in the United States is 11.4 years. Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. It can gather data to . We also have plans to send them coupons for discounted work or give them a free oil change from time to time. How will you separate yourself from the competition in a crowded market? And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Do not sell or share my personal information. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Our goal is to capture a majority of the market in little or no time. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. brokers, but I have to say that I have not worked with a more professional and diligent We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. www.ratchetandwrench.com is using a security service for protection against online attacks. 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. 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. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. A valuation represents your companys total worth. So how do we make money? Meredith has worked as a writer and editor for more than a decade. Please enable JavaScript on your browser and try again. 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. Also, electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. On Oil boasts of a unique and well versed management team that will allow us achieve objectives! Equipment would sell for today, how to value a quick lube business emergency repairs for sale near you, give a! Sales generated by the quick overturn of customers and relatively low overhead jiffy lube is leading... 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