Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. To reach our local customer base, we will employ a marketing manager. In fact, most quick lube operators choose to franchise for this reason. 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. www.ratchetandwrench.com is using a security service for protection against online attacks. Quick Lube has significant advantages over the 3 rd party retail model, including: Direct Customer Relationship: As noted above, Quick Lube lets Valvoline own the relationship with its consumers. Our plan at Easy On Oil is to service the middle and upper income markets. Order Reprints. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. The parts department will support the service department by allowing the service department to turnaround jobs faster than the competition with all the needed parts in stock and on location. These conservative assumptions make for a more accurate estimate of real risk. Consumers are shifting toward premium products within the quick lube industry. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. But buyers arent exempt from this step in the process! Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. To start off, there are two major types of electric cars that are on the roads today. Buyers obviously won't need all of these documents, but they should still review their own financials. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. 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. In fact, with our location distribution we cover the market. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Live for the first time at our partner ilani Casino! We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. We will always stress the fact that we only offer reliable services. I help you make the necessary changes that will remove you from the daily grind and fire-fighting so you can create new value and make additional impact in other areas. This is where you come in! Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. everything transaction moving forward and would recommend him to anyone looking to get Examples include: Intangible assets: These are all the non-material assets that add value to your business. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. 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. Generating Funding/Start up Capital for Easy On Oil. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California. 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. Familiarity with your industry is crucial for both buyers and sellers. add technician notes to the photos. 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. The income approach to business valuation determines the amount of income a business can expect to generate in the future. (IBIS World), #3. Our Products and Services 4. Do you want to start a Quick Lube company and need to write a business plan? We also plan to leverage an automotive service scheduling software program. In 2018, the industry was valued at $7 billion in the U.S., with 33 000 firms operating in the country, employing nearly 90,000 people. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. However, to keep capital investments low and offer quick building relocation, vehicle lifts can be used rather than basements. Joe handled every aspect and obstacle that presented itself throughout the sales 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.). When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. The cost of an oil. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. We will also strengthen our relationships with local mechanics to capture repair needs of the local and highway traffic. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. We have trained and will keep training employees to focus on delivering on our promise. www.ratchetandwrench.com is using a security service for protection against online attacks. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Over half of these competitors offer both auto repair services, although without an inventory store. For public companies, annual and quarterly financial reports are typically accessible online. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. Order Reprints. 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. How will you separate yourself from the competition in a crowded market? To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. 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. (Digital Dealer), #17. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Implement an ongoing training program. 3. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number. 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. Finally, any current debts or future payments, called liabilities, are subtracted from the net income. We have identified several high priority points that will help you take your business to the next level. Jiffy Lube is a leading provider of automotive preventive maintenance. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change About Your Results To calculate your businesss SDE: Start with your pretax, pre-interest earnings. Profit and loss statements for the last three years. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. People will continue to drive regardless of the general economic market. 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. Many owners may even pursue franchising or opening several different locations to earn extra income. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. text the finished report to the customer's mobile device. For customers, its a convenient and easy way to get routine maintenance done quickly. 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. Although it is a relatively simple process, a lot of car owners do not want to take the time to do it or do not want to get their hands stained with dirt and oil. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. All financial products, shopping products and services are presented without warranty. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. (Business Wire), #13. We understand that starting a business like ours can be very expensive due to the high cost of equipment. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. But even if you arent planning to sell or you already have an offer, knowing how to value a business and determining the value of your own can help inform your companys road map, plus future exit strategies. Sally Lauckner is an editor on NerdWallet's small-business team. However, this does not influence our evaluations. The work done here is every bit as good or better than the nationals, the price seems at least a bit better, and I had a better experience overall. Make sure your company checks these three boxes: You make steady profits. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Most online business valuation calculators use a variation of the income approach. As you can deduce from its name, the market approach to valuing a business determines a companys value based on the purchases and sales of comparable companies within the same industry. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. KEYWORDS oil change Operations Quick Lube. Some of them also have electronic work order systems available amongst their various service centres. : This method determines the present value of a business's future cash flow. Why do diesel exhaust fluid (DEF) prices keep rising and falling? The profitability of individual companies depends on convenient location and good marketing. At Easy On Oil,we face over 15 auto repair and auto parts competitors in the local area. If YES, here is a sample Quick Lube business plan template & feasibility report. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. 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. The higher your SDE multiple, as you might expect, the more your business is worth. (Statista), #21. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. (Digital Dealer), #19. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. Businesses in this industry change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. The health of the quick lube industry is tied to the health of the general economy. Another 16% of business owners have two locations where they provide services. So, established businesses with stable profitability often use this valuation approach. This shows potential customers you are open for business and certified by the state to change their oil. A Sample Quick Lube Repair Business Plan Template Table of Content 1. Subscribe to our Blog. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. NerdWallet's ratings are determined by our editorial team. When evaluating offers, please review the financial institutions Terms and Conditions. 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. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. 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. Approaches to a successful small-business evaluation. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. 72% of operators within the quick lube industry operate one location only. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Industry Overview 2. 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. At Easy On Oil, weve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. 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. (IMR Automotive Research), #9. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! 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. This process is automatic. Every state has a different process when it comes to business licensing. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. The keys to success include having quality employees, efficiently managing costs of goods and location, and great customer service. Contact us today! Easy On Oil will be managed by its three founding partners. Businesses in this industry are very important to the general automotive industry. At Easy On Oil, weve made plans to create a significantly large regular customer base. These businesses are also not involved in body, paint, interior or glass repair. Sample 1 Sample 2 Sample 3 Based on 6 documents The Top Automotive Oil Change Franchises of 2023. Together with our team, these experts will help ensure you get the best Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. 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. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. Make sure they know by having your license visible front-and-center. 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