BusinessHABOur guide on starting a mobile oil change covers all the essential information.
To help you decide if this business is a good match for you.
Learn about the day-to-day activities of a mobile oil change owner.
The typical target market, growth potential, startup costs, legal considerations, and more!
Just like any other business, maximizing your capital is one important aspect in starting your business.
Particularly in a business of oil changing.
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There are a lot of things that you must have to be able to give the best service to your customers.
Money is an important aspect. Depending on the type of business you like to start.
Capital needed may vary from as less as 100 to 100k dollars.
Thus, in starting an oil change shop, let these simple questions help you on how to spend your money:
a) Would you rent or do you have your own strategic place for your shop,
b) Which materials do you need in order for your shop to start running, and
c) How many personnel do you intend to employ for the shop?
These aspects are important to think about in order to maximize your capital.
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1. Get the business background:
Mobile oil change businesses provide quick oil changes and other basic automotive services at clients’ sites.
Most businesses work out of a trailer that’s equipped with all required tools, parts and fluids.
The oil change services market is a $7 billion industry and continues to steadily (if slowly) grow.
Mobile oil change businesses don’t need to capture much of the market to make a handsome profit.
Moreover, by providing convenience that’s unparalleled in the industry the can get a solid foothold in the market.
2. Know the right person for the business:
Anyone who is passionate about cars and enjoys working with their hands may enjoy spending their days working on customers’ cars.
It also helps to have people skills, for business owners regularly talk with customers about the condition of their vehicles.
This is a business that people can start part-time, while working another job.
Appointments can be scheduled during evenings and weekends.
Or whenever not working at the other occupation.
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3. Know the work involved:
A typical day at a mobile oil change business consists of:
- Scheduling appointments
- Driving to customers’ locations
- Changing the oil on customers’ vehicles
- Performing other automotive services
When not engaged in these activities, business owners place orders and restock supplies.
4.Know the targeted market:
The target market for a mobile oil change business is both private and commercial automobile owners.
Rental car companies and fleet owners are especially lucrative customers, for working on their cars reduces how much time is spent traveling between locations.
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5.Know how to make money
A mobile oil change business makes money by charging customers for changing the oil in their vehicles.
Most oil changes also include a few basic other services (e.g. topping off fluids, inspecting brakes, etc.).
6. Know the growth potential
A mobile oil change business can remain a small operation with just one or two people.
Or, it can grow to become a large company that offers services in multiple geographic areas.
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7. Get the skills and experiences:
Mobile oil change business owners must possess a knowledge of how cars work.
They at least need to know how to change the oil in different vehicles, and having a more robust automotive knowledge is beneficial.
Business owners who don’t have experience working on cars may want to enroll in an automotive course at their local community college or vocational school.
Online courses, such as those offered by Ashworth College and Bergwall, can also be helpful.
Alternatively, business owners can work in the industry prior to opening their own business.
Many mechanics have primarily on-the-job training, although these mechanics normally don’t have any certifications to demonstrate their expertise.
However a business owner gains the required knowledge, it’s a good idea to keep books on hand for reference.
8. Know the costs involved:
The startup costs to open a mobile oil change business are fairly low because these businesses don’t have a brick-and-mortar location. It’s possible to open a business with between #20,000 and #100,000. This capital goes towards:
- Oil and other fluids (e.g. windshield washer fluid, antifreeze, etc.)
- Oil filters and other parts (e.g. lug nuts, air filters, etc.)
- A vehicle (a van, or a truck and trailer)
- An oil-dispensing system (hoses and pumps)
Business owners that are on a limited budget can reduce their vehicle expenses by purchasing a used van.
They also can forgo the oil-dispensing system, instead manually opening bottles of oil and pouring them.
Finally, business owners can limit their oil, fluid and filter expenses by purchasing the supplies they’ll need each morning before they begin driving to customers’ sites.
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9. Get the steps:
Once you’re ready to start your mobile oil change, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:
- Plan your business. A clear plan is essential for success as an entrepreneur. A few important topics to consider are your initial costs, your target market, and how long it will take you to break even.
- Form a legal entity. Establishing a legal business entity prevents you from being personally liable if your mobile oil change is sued.
- Register for taxes. You will need to register for a variety of state and federal taxes before you can open for business.
- Open a business bank account. A dedicated checking account for your mobile oil change business keeps your finances organized and makes your business appear more professional to your customers.
- Set up business accounting. Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
- Obtain necessary permits and licenses. Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
- Get business insurance. Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
- Define your brand. Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
- Establish a web presence. A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
10. Strategic Place
Do you have a strategic place where to put up your shop or do you plan to rent a place?
You may think that in order to save up your capital.
Using your own place is a very favorable move.
However, one thing you should consider is how profitable the place you have is.
Using a percentage of capital for renting a good place for your business is a better move than saving it up then regretting later.
The best way is to search for a place that is accessible and can be seen by many motorists.
This is to ensure that you are close to your prospect clients.
Even if your monthly payment for rent took a toll on your capital, the profit attained from it can still compensate.
Thus, renting a place does not necessarily waste your capital.
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11. Materials
Weighing on the importance of materials needed is another big factor in maximizing your capital.
Since you are in an oil changing business, oils are the most important merchandise that you need to have.
Research and choose which among the available products are proven to have the best effects recommended for engines.
Remember, being the best product is not measured through fame.
The goal of your research is to get the best product at the least price.
A suggestion is to try buying in bulks since businessmen prefer to sell at large amounts on smaller interests.
Aside from oils, the tools to be used are another important factor for oil changing shops.
Having a complete set of tools since without these tools, common sense would tell you that you would not be able to change the oil of a vehicle.
Thus, decide specific tools that you need for the job.
The main goal is not to buy more or less than what is really needed.
12. Personnel
Another major investment that needs a percentage of the capital is the salary of personnel who would be employed on your shop.
Without appropriate personnel to help you, your shop would never be efficient to serve all your clients.
The goal in hiring personnel is to ensure that they do know the specifics of what they are tasked to do.
Since you are in an oil changing business, before hiring people.
Try to test them a little by asking them specific concepts on oil changing and see whether they can keep up with your questions.
Asking them to act out the how to change engine oils can also be another way to make sure that you would hire personnel appropriate for your business.
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13. Promote & market your business
The two most effective ways to market a mobile oil change business are by including a sign on the business’ vehicle and cold calling.
Just one successful call to a corporation that has many vehicles or employees (who have their own vehicles) can a sizable amount of repeat business.
14. Business services:
Mobile oil change businesses set themselves apart from quick lube places by offering unsurpassed convenience.
To keep customers coming back for oil changes.
The level of service and the convenience provided must not be compromised.
14. Build a team
While it’s possible to run a mobile oil change business with just one person.
Hiring an employee from the outset can help the business grow.
An employee can schedule appointments while the owner focuses on servicing cars.
When not scheduling appointments, the employee can help with oil changes to speed them up.
15. State & Local Business Licensing:
Certain state permits and licenses may be needed to operate an oil change business.
Most businesses are required to collect sales tax on the goods or services they provide.
To avoid liability and potential lawsuits, oil change businesses should have their clients sign waivers.
Structuring your business as a limited liability company (LLC) ensures your personal assets are protected in the event your business is sued.
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16. Charging of customers:
Most oil changes cost very low depending on where they’re done.
Mobile businesses can charge on the higher end of this range because of the convenience they provide.
Business owners might, however, want to offer a slightly lower price (e.g. in the middle of the range) when multiple vehicles need oil changes.
It’s common for businesses in the industry to offer additional basic services that increase the total cost of an appointment.
Some such services include brake repairs, fluid top-offs and air filter replacements.
17. Know how to make your business more profitable:
There are multiple ways a mobile oil change business may increase its profitability.
Businesses can get into basic auto repairs, heavy equipment oil changes or farm equipment oil changes.
It’s often cheaper for construction companies and farmers to pay a mobile service that will come to them than to drive large equipment to a garage.
Some businesses also earn a profit by receiving referral fees for recommending local auto repair shops to customers who need more significant work done on their vehicles.
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18, Know the equipment needed:
Determine what equipment you need.
This depends on whether you are building a new shop or purchasing or leasing a previous oil change company.
If you are purchasing or leasing a previous oil change company.
Some or all of the equipment may come with the location.
Equipment includes radiator flushing machines, hoses, oil tanks to hold bulk oil, transmission flushing machines, cash registers and small items such as oil drain buckets.
19. Know the startup cost:
Determine the cost of startup inventory.
Inventory for an oil change business consists of oil, oil filters, fuel filters, air cleaners, transmission fluid, antifreeze, power-steering fluid, brake fluid and windshield washer fluid.
These are items that you sell to your customers.
Next, figure the cost of shop supplies, such as shop rags, an oil disposal tank, an antifreeze disposal tank, employee uniforms and tools.
Most shops require employees to supply their own hand tools.
20. Get the needed skills:
You don’t have to be an auto mechanic to start a mobile oil change business.
However, it is important that you learn all the business techniques like how to change oil.
Which oils are the best to be used and which oils you should avoid.
By learning about the business, you would be able to determine if it’s the right business for you.
21. Build a customer base
Before you start, it’s important to build a customer base by speaking to potential clients and introducing your business to them.
You must ensure that you leave your business card with them so that they can call you whenever they need an oil change.
22. Set up your prices:
Determine prices for your services.
At first, you should fix prices that would help you break into the market easily.
This means that your prices should be competitive and comparatively cheap.
You may now adjust your prices when you have been able to break into the market and gathered lots of customers.
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23. Provide excellent services
When on the job, you need to perform your job to the best of your ability to make sure your customers return to you and refer other people to you.
If you do a clumsy job, you may end of losing customers and your reputation too.
24. Competition:
Conclusion:
Starting a mobile oil change business can be a good business idea, especially with the flexibility and profit attached with it.
Take a look around you, how many automobiles have you seen today?
In the state where you reside, how many cars do you think are in your state or in your country as a whole?
Mobile oil change business is growing rapidly now.
Because people have recently become aware of the huge demand for this service.
And the high level of profitability too.
A mobile oil change business enables you to go out and service a customer at his location.
Capitalize the most on this USP, which a stationary oil change business lacks by providing quality and efficient service in order to stay ahead of competition.
So if you want to start your own mobile oil change business too?
BusinessHAB