These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. Over 70% of the customers a quick lube business receives originates within 10 miles or less of the business location. 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. Operating income for the Quick Lube segment grew from $95 million in 2015 to $153 in 2018, or 17% compounded annually. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Sample 1 Sample 2 Sample 3 Based on 6 documents If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. 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. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Most of our competitors have adopted point-of-sale systems in their stores. Another 22% of operators combine automotive repair with quick lube services. 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. She has over a decade of experience in print and online journalism. With Easy On Oil as a technologically savvy business with computerized monitoring of all automotive lubricant and repair parts inventory, we plan to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. In comparison, leasing costs are just 9% of the overall expenses for the average location. Our opinions are our own. www.ratchetandwrench.com is using a security service for protection against online attacks. Jiffy Lube is a leading provider of automotive preventive maintenance. It can gather data to . This information may be different than what you see when you visit a financial institution, service provider or specific products site. The quick lube industry focuses on providing oil changing services for automobiles. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. 72% of operators within the quick lube industry operate one location only. Electric vehicles impact the future of the automotive repair industry in many different ways. LOCATION, LOCATION, LOCATION. Maintaining the website with new trends and advises. Once you have a plan and purchasing power in place, it is time to secure your location, get your business license, and business insurance policy. Every state has a different process when it comes to business licensing. 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. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Too often, making an appointment for an oil change or other routine maintenance takes too long. As 2018 kicked off, Jiffy Lube launched a new brand extension. When evaluating offers, please review the financial institutions Terms and Conditions. Over my over fifty year career, I have had the privilege of working with many other Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. However, this simple method doesn't always provide the full picture of a company's value. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. This company offers true quick oil change and a new filter. According to reports, the industry is fragmented; the 50 biggest companies generate less than 40 percent of revenue. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. #1. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. You have a loyal customer base. Quick Lube operating income is up to $162 million TTM . Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Easy On Oil will be managed by its three founding partners. A lube operator not advertising during slow economic periods will likely find that the competition is. person. Check out the ACS reviews left by our clientele. Over the past decade, improved technology and extraction techniques enabled industry . Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. (Car Wash Magazine), #8. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. On the sell side, a deep understanding of your industrys trends can help you reach an informed valuation that reflects your business assets as well as the current market. You will be redirected once the validation is complete. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. SHOP STATS . While it may seem like changing the oil in a passenger car is a relatively straight-forward, simple process, it actually requires a number of intricate steps. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? Sources: New Constructs, LLC and company filings. Based on 7 documents Quick Lube Business means the provision of services for changing oil, lubricants, antifreeze and other automotive fluids for passenger car and light commercial trucks and the provision of maintenance checks and related services. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. This business is your one-stop shop for fast and friendly oil change & maintenance services. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. If youre interested in learning more about the automotive business buying process and how our expert Although this may create some upfront reduction in revenue, we believe it will end up paying out in the long run as we start to build up a client base that will only come to us for repairs and refuse to go anywhere else. Regardless of the option you pursue, get the word out with our help. (Business Wire), #14. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. Theres a different SDE multiple for every industry. Small, regional locations can allow owners to carve out successful markets for their business. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. This process is automatic. Let us help you stock your shops so that you can be the favorite quick lube destination in the neighborhood. (Digital Dealer), #18. It can be an especially useful approach for rapidly growing businesses and industries. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. Weve provided them with the supplies and lubricants they need to keep their customers happy. We at Easy On Oil have analysed this and we will favorably compete by focusing on convenience and offering a high level of customer service. Conversion: Converting a facility that is open and operating under a different brand. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. At Easy On Oil, our mission is to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners in San Diego, California. Put your license proudly on display at your business. Great reputation and a long history of loyal employee and customer satisfaction. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. Home Business Plans Automotive Sector. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. We believe that by establishing a strong customer relationships based on trust and integrity, we can benefit from a strong regular customer base and good referrals. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. Sally Lauckner is an editor on NerdWallet's small-business team. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. This offers incredible value to customers who need their cars fixed right away. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. to post every listing on the site. 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. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. The largest technological advancement in the automotive industry is the introduction of electric vehicles. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. If so, read on about what it takes to become one. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. (Business Wire), #16. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. First, though, you have to get your financial information in order. Car owners instead prefer to pay someone else to do it for them. Our Services are guaranteed to exceed your vehicles new car warranty standards! For the average business, they account for 60.7% of total expenses. Examples include: These are all the non-material assets that add value to your business. We will attract and maintain a loyal customer base through our customer-oriented focus on business. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Read more. Take 5 Oil Change is one of their fastest growing brands. 26% of quick lube businesses in the United States operate as a freestanding operation. 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. Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Familiarity with your industry is crucial for both buyers and sellers. (Car Wash Magazine), #10. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. Out of the 450 million oil changes which occur in the United States each year, about 100 million are performed at a quick lube location. (Car Wash Magazine), #11. 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. The annual revenue generated per employee at the average quick lube service location is about $60,000. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. About Your Results We plan to give our clients a few business cards to hand out to friends when they talk about our quick lube services or buying new parts. Temple Curtis represents sales/management, Helen will focus on the finance/administration section of the business and Aaron will focus on the mechanical aspect of the business. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. 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. You'll need a minimum of $50,000 cash as a startup fee. Businesses in this industry are very important to the general automotive industry. The company would need to have sales decrease by more than 30% before we can be unable to satisfy our month to month financial obligations. NerdWallet's ratings are determined by our editorial team. (Car Wash Magazine), #6. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. Later, too, you can use this list to create an overview of your companys value for potential buyers. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. We understand that starting a business like ours can be very expensive due to the high cost of equipment. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. The average age of a vehicle owned in the United States is 11.4 years. 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. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. 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. (Digital Dealer), #17. All financial products, shopping products and services are presented without warranty. This does come at a cost though. This is another opportunity to seek the counsel of a mentor or a professional advisor, who can provide insight into your businesss assets from a more objective perspective. Often, sellers keep their business liabilities and pay off their debt after their business is sold. Our vision at Easy On Oil is to become the leading business that offers Quick Lube repair services and a well-stocked repair parts shop in San Diego, California. (IBIS World), #3. Below is a detailed analysis of how we want to spend our startup capital. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. 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