Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. To reach our local customer base, we will employ a marketing manager. assign a green, yellow, or red status to each part. (Business Wire), #14. (Car Wash Magazine), #5. 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. Our plan at Easy On Oil is to service the middle and upper income markets. Pre-qualified offers are not binding. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. NerdWallet's ratings are determined by our editorial team. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. The service requires full cookie support in order to view this website. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. Meredith has worked as a writer and editor for more than a decade. 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. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. You'll need a minimum of $50,000 cash as a startup fee. Your market's volume is expanding, and you have the opportunity for growth. In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). 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. Experts believe that demand in this industry is driven by the amount of driving that consumers do and by new car sales. Although this can be very hard to achieve if we have high employee turnover which can lead to inexperienced new workers who need to be guided in the business, which can take time. Ensures that the shop is secured at all time, Patrols around the building on a 24 hours basis, Handles any other duty as assigned by the manager, Providing automotive oil change and lubrication services, Providing automotive emissions testing services, Providing automotive rustproofing and undercoating services, Providing automotive safety inspection services, Providing automotive tire repair services, Providing emissions testing with repair services, Spray-on bed liner installation for trucks. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. 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. 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. If so, read on about what it takes to become one. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . 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. Disclaimer: NerdWallet strives to keep its information accurate and up to date. This allows households to save a little money on the aftermarket needs of their vehicle. For public companies, annual and quarterly financial reports are typically accessible online. Based on currently available information, Valvoline has a total of 1,595 system-wide stores. Profit and loss statements for the last three years. Do not sell or share my personal information. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. Jiffy Lube is a leading provider of automotive preventive maintenance. At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services. 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. Jiffy Lube International. How to Write a Waterless Car Wash Business Plan [Sample Template], How to Write a Salvage Yard Business Plan [Sample Template], How to Write a Vehicle Testing Station Business Plan [Sample Template], How to Write an Autonomous Vehicle Production Business Plan [Sample Template], How to Write a Mobile Alloy Wheel Repair Business Plan [Sample Template], How to Write a Lubricant Oil Production Business Plan [Sample Template], How to Write a Party Bike Business Plan [Sample Template], How to Write an ATV Rental Business Plan [Sample Template], How to Write a Valet Parking Business Plan [Sample Template], How to Write a Diesel Engine Repair Shop Business Plan [Sample Template], cars are impacting the future of the automotive repair industry. 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. But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. Major companies include Jiffy Lube, Pennzoil 10-Minute Oil Change, Valvoline Instant Oil Change, and Texaco Xpress Lube. More on liabilities in a bit. www.ratchetandwrench.com is using a security service for protection against online attacks. Theres a different SDE multiple for every industry. 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. 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. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. www.ratchetandwrench.com is using a security service for protection against online attacks. (Valvoline), #24. 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. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. We plan to offer our clients personalized service by offering convenience and rapid service. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Along with that, all-electric vehicles can pose some challenges to auto mechanics. Among these, only a few are major national chains. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. New Constructs, LLC. The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. 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. As franchises in the industry go, Victory Lane keeps it simple. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. Make sure your company checks these three boxes: You make steady profits. Later, too, you can use this list to create an overview of your companys value for potential buyers. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. text the finished report to the customer's mobile device. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. In 2011, 31% of consumers preferred a premium product. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. 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. Two profitable, successful and well-run, independent quick lube and minor auto repair shops. Regardless of the option you pursue, get the word out with our help. The visitor industry provides employment for more than 160,000 people. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. (Car Wash Magazine) #7. On average, 2/3 of business comes from . Let's #LineItUp from Washington State! From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. 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. She was trained at Ford and later took a position at Chevrolet. : This method determines the present value of a business's future cash flow. 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. Mike has been instrumental in helping me successfully complete 4 transactions (both Snappylubeinc.com Established in 1989. 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 why several other methods exist. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. So, established businesses with stable profitability often use this valuation approach. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. ", 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know, 50 Best Business Letter Closings of All-Time. And, with an ever-increasing reliance on personal over public transportation, vehicle owners do more driving now than ever. person. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. A typical location performs about 1,200 jobs per month. Unlike EBITDA, though, youll also add back in the owners salary and owners benefits into your SDE calculation. Job Roles and Responsibilities 6. Maintains vehicle records by annotating services and repairs. 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. (Business Wire), #16. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. You have a loyal customer base. Every state has a different process when it comes to business licensing. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. But buyers arent exempt from this step in the process! In 2016, 45% of consumers asked for premium products from their preferred quick lube business. We all know this chore requires ones hands to get dirty, and for this reason alone, many car owners are perfectly okay paying a quick lube business to do the job for them. (Car Wash Magazine), #7. The largest technological advancement in the automotive industry is the introduction of electric vehicles. into the automotive business. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. (Car Wash Magazine), #4. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. ), 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. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. 3. 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. As revenues have increased, however, net profits have decreased by 2.3%. We understand that starting a business like ours can be very expensive due to the high cost of equipment. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. We have tapped into real estate where our competitors cannot go. We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. Wherever you are in your businesss lifecycle, its important to know how to value a small business. Our partners cannot pay us to guarantee favorable reviews of their products or services. Consumers are shifting toward premium products within the quick lube industry. People will continue to drive regardless of the general economic market. Our Business location provides us with a vast market and many opportunities. You might think that you can't actually distill the value of your entire business to an exact number and, sure, in a way it's a bit of an estimate. As cars become more complex, even something as simple as changing the oil could require a manual. Discounted cash flow method: This method determines the present value of a business's future cash flow. buying and selling) over the last 15 years. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. The quick lube industry focuses on providing oil changing services for automobiles. Like EBITDA, business owners calculate SDE to determine the true value of their business for a new owner, so your SDE will include expenses like the income you report to the IRS, non-cash expenses whatever revenue your business actually generates. (Digital Dealer), #19. 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. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. 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. So how do we make money? These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. Youve come to the right place. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. (Digital Dealer), #18. In fact, most quick lube operators choose to franchise for this reason. 1. 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.). Just 9% of customers come from a 2-mile radius. Then, you can demonstrate to potential buyers what makes your business stand out. How much is an oil change? She is based in New York City. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. We plan to reduce our employee turnover rate by treating our employees equally and well, giving good benefits and paying them well. All-in-all, electric vehicles are more efficient and environmentally friendly and they are only getting better. Protect your EATS system with Delo 600 ADF. We will also differentiate our business by having 5 spacious bays at every location. effective manner and I never once felt like I was in the dark. The most successful owners invest in these practices to deliver the best service for their customers. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. In particular, the Adjusted Net Asset Method calculates the difference between a business's assets including equipment, property, and inventory, and intangible assetsand its liabilities, both of which are adjusted to their fair market values. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. Marketing programs at lubes should be powerful and . First, though, you have to get your financial information in order. Joe handled every aspect and obstacle that presented itself throughout the sales For customers, its a convenient and easy way to get routine maintenance done quickly. Paul Hodowanic. Your SDE represents the true, monetary value of your business, but your SDE multiple values your business according to industry standards. When evaluating offers, please review the financial institutions Terms and Conditions. Does becoming a quick lube business owner sound good to you? Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. The appeal of a quick lube business is easy to see. One Independent Quick Lube w/RE in East-Central South Dakota! So, most maintenance on electric cars will be more software driven. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. Competition discounting is a major issue within the quick lube industry at the local level. This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. Sample 1 Sample 2 Sample 3 Based on 6 documents Our opinions are our own. The health of the quick lube industry is tied to the health of the general economy. Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. 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. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. We will always stress the fact that we only offer reliable services. We believe earnestly that this will also make our customers more comfortable working with us when they see the same technicians each time they come in for changes. It must also be done for a quick lube business. Weve provided them with the supplies and lubricants they need to keep their customers happy. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. She has over a decade of experience in print and online journalism. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Over half of these competitors offer both auto repair services, although without an inventory store. We believe everyone should be able to make financial decisions with confidence. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. We will attract and maintain a loyal customer base through our customer-oriented focus on business. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. First, make a detailed report of your business assets and liabilities. 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. 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. Re-opening a former auto repair or quick lube business can save significant time and money. 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. This is where you come in! The annual revenue generated per employee at the average quick lube service location is about $60,000. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. 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. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. 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. 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. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their 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. How will you separate yourself from the competition in a crowded market? 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. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. (Digital Dealer), #20. For that reason, projections of growth for the industry are as low as 0.7% within the forecast period in some markets. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. No matter what, applications must be filled out and fees paid. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. 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. Quick Lube operating income is up to $162 million TTM . 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. "Jiffy Lube Multicare is not a rebrand; it is more of an extension," said Steve Ledbetter . We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. second to none. Small, regional locations can allow owners to carve out successful markets for their business. The average price for a multi-point oil change within the quick lube industry is $36.82. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. The most popular has been around for a while, hybrid-electric cars. 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. In fact, even in states where electricity is produced in the dirtiest way, burning coal, all-electric vehicles are more environmentally friendly than gas-powered. Order to transfer business ownership, regardless see your credit report and basic financial profile the owners and... Dramatically impact this industry is the introduction of electric vehicles are more efficient and environmentally friendly and they are getting. Than 32 million visitors in 2012 ; collectively they spent an estimated $ 8 billion the value of a 's! Annual and quarterly financial reports are typically accessible online buyers arent exempt from step... Your assets value and depreciation our cost analysis above, we need approximately $ 560,000 plus 1,200,000. To exercise control over any emotions and assign them a monetary value your. Report to the high cost of equipment growth for the industry is by. New trends in the business Jiffy lube, Pennzoil 10-Minute Oil change business has... Keep its information accurate and up to date filled out and fees paid yellow, or red to! Change business that has outstanding how to value a quick lube business 1 in 3 vehicle owners decide to change own... Owners invest in these practices to deliver the best of their vehicle about our new offerings and new trends the... Run full automotive diagnostics and repairs likely that any sellers you 're selling your... Commercial fuel needs of the valuation process, the more confident youll be in SDE. Method determines the present value of a business 's future cash flow:... 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