Auto Repair Shop SWOT Analysis

Posted by Matthew Deutsch on November 16th, 2011 at 04:03am

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This is an important discussion as it relates to developing a SWOT analysis that is specific for an auto repair shop. In this discussion, we will discuss the development of a Auto Repair Shop SWOT analysis for a business that is seeking to acquire SBA loans, angel investors, or other types of financing. You should immediately focus on the continued demand for these services despite negative changes in the economy. Since cars have become more complex, it is imperative that you focus on how only a qualified mechanic can now fix a vehicle. This should be one of the most important focuses within your SWOT analysis. Within your business plan, especially if you are applying for a Small Business Administration loan, then you need to show the tangible assets that you are going to be purchasing with the funding that you are seeking. Additionally, you should include all of these matters within your financial statement. Auto repair shop typically operates with a strong degree of economic stability as the necessity for these auto repair shop businesses remain in demand despite negative changes in the economy. Additionally, auto repair shop generate substantial gross margins from their auto repair shop that make them a viable candidate for SBA loans, business loans, or private investment. As with all SWOT analyses, you’re going to want to develop a strength section, weaknesses section, opportunities section, and for that section that views every aspect of your auto repair shop business.

First, you’re going to want to focus specifically on the strength of your auto repair shop. Here, you’re going to want to reiterate the continuous demand for your auto repair shop on a year round basis as it pertains to your customers. As such, you will be able to have a very profitable business very quickly if you were able to have your auto repair shop generate customers. Very frequently within this section of the Auto Repair Shop SWOT analysis, is to have a discussion that showcases your experience is entrepreneur, your experience working in auto repair shop industry, and how you intend to expand the business during its initial years of operation. Drafting a business plan alongside your Auto Repair Shop SWOT analysis is very important for you to effectively have a number of pieces of information that reiterate the fact that these are very good businesses as it relates to being a candidate for angel investment or private investors. If you are working with private investors then you may need to have a properly written business plan as it relates to your auto repair shop.

In the next section of the Auto Repair Shop SWOT analysis, you’re going to want to focus on the weaknesses relating to this business. This is a very important section to showcase clearly, especially if you’re looking for loans or investors, as you will have shown that you have thought through every aspect of your auto repair shop business. Typically, the greatest weaknesses that auto repair shop businesses have are that there is a significant amount of competition within any given market. Additionally, there are a number of large overhead costs associated with operating a auto repair shop in addition to license requirements.

Next, you’re going to want to focus on the opportunities that are associated with operating a auto repair shop. Here, you can discuss how you intend to expand your marketing campaigns and marketing infrastructure by having a website, providing discounts during busy seasons, establishing relationships with other automotive dealers, developing specialized deals, and the potential to develop additional offices throughout your target market while hiring associated personnel for your auto repair shop.

Finally, you are going to want to thoroughly discuss the highly predictable streams of revenue that you will generate by providing these vehicle repairs to the general public on an ongoing basis as it pertains to your auto repair shop. You will also want to mention the necessary license involved which provides your business with a high barrier to entry. The highly predictable streams of revenue generated from your auto repair shop will ensure that you are considered to be a viable candidate for any type of financing that you are currently seeking.

On a final note, you are always going to want to seek proper advice from a number of different sources. Most importantly, you should have an initial discussion with your CPA, lawyer, business adviser, and financial adviser as it relates to your ability to raise capital via a SBA loan, angel investor, conventional loan, or other type of financing. You will also need to have a properly developed profit and loss statement as it relates to your auto repair shop.

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