How to Start an Auto Repair Shop?
2 Answers
Rent a location and purchase equipment. Apply for an auto repair license at the transportation bureau. After obtaining the auto repair license approved by the transportation bureau, proceed to the industrial and commercial bureau to apply for an auto repair business license. After obtaining the auto repair license and business license, register for taxation at the national tax bureau and local tax bureau.
Financial planning should absolutely be your top priority before opening a shop. I believe having sufficient capital prepared is crucial—you need to estimate all expenses: equipment like lifts, diagnostic computers, and tool cabinets could cost at least 50,000 yuan if bought new, or 20,000-30,000 yuan for used items. Rent varies by location, with annual leases in urban centers starting at 40,000 yuan plus a deposit. Add labor costs, such as hiring 1-2 technicians initially at 5,000 yuan monthly each. I recommend creating a detailed budget spreadsheet listing monthly costs like utilities and routine supplies. If funds are tight, start small—focus on oil changes and tire services first, then gradually reinvest profits to expand. Don’t overlook emergency cash reserves—I set aside six months’ living expenses as a buffer. For financing, explore bank loans or partnerships, but always present a clear business plan with revenue projections and service pricing (e.g., charging 50-100 yuan for basic oil changes, targeting 5+ cars daily). Track every transaction, review profit/loss monthly, and this discipline will help you grow steadily while avoiding cash flow crises.
