This means intellectual property, your production line, your delivery truck if its a part of your business, you'll either need to account for it as an asset or a liability. If you are contemplating a transaction in the auto service sector I can 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. Read more. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. SHOP STATS . We understand that starting a business like ours can be very expensive due to the high cost of equipment. We also plan to leverage an automotive service scheduling software program. Many or all of the products featured here are from our partners who compensate us. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. 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 buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. The largest technological advancement in the automotive industry is the introduction of electric vehicles. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Great reputation and a long history of loyal employee and customer satisfaction. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. 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. 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. 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. 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. 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. LOCATION, LOCATION, LOCATION. Later, too, you can use this list to create an overview of your companys value for potential buyers. Re-opening a former auto repair or quick lube business can save significant time and money. Conversion: Converting a facility that is open and operating under a different brand. 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. 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. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Our Products and Services 4. 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. He will be charged with overseeing the sales and marketing of Easy On Oil. 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. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Verifies vehicle performance by conducting test drives; adjusting controls and systems. This information may be different than what you see when you visit a financial institution, service provider or specific products site. To start off, there are two major types of electric cars that are on the roads today. 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. 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. Familiarity with your industry is crucial for both buyers and sellers. 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. Mike has been instrumental in helping me successfully complete 4 transactions (both This information may be different than what you see when you visit a financial institution, service provider or specific products site. 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. Buyers obviously won't need all of these documents, but they should still review their own financials. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. Along with hybrids, all-electric cars are taking to the streets across the world. vendors, insurance agents, and others. For a full breakdown of the quick lubes we have for sale, as well as a Additionally, franchising a business comes with an entirely different set of understandings and obligations. 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. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. 16% of the oil changes which occur within the quick lube industry feature Valvoline products. Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. 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. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. Do you want to start a Quick Lube company and need to write a business plan? 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. 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. Keep up to date on our new listings and business opportunities. In the United States, about 450 million oil changes are performed each year. (IBIS World), #3. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. These conservative assumptions make for a more accurate estimate of real risk. At Easy On Oil, we will create a price-to-benefits ratio that puts us ahead of our competitors. second to none. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. We have tapped into real estate where our competitors cannot go. Below is a detailed analysis of how we want to spend our startup capital. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. The profitability of individual companies depends on convenient location and good marketing. In fact, with our location distribution we cover the market. If YES, here is a sample Quick Lube business plan template & feasibility report. Does becoming a quick lube business owner sound good to you? 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. The income approach to business valuation determines the amount of income a business can expect to generate in the future. Figure 1: VVV's Segment Operating Income Since 2015. 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. 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. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. I also like doing business with a local firm vs. a national chain. Jiffy Lube International. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. These are some of the most efficient cars to ever be driven. The two PEGs that own Express Oil LLC now have more than 700 stores. 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. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. 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. Subscribe to our Blog. If you want to take the income approach, you can choose between two commonly used valuation methods. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. How much is an oil change? Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. So, most hybrid-electric cars do not ever run on electricity alone.