Keys for starting a successful auto repair business in Singapore

Although relatively small in size, the country of Singapore has a ratio of 149 motor vehicles per 1000 people, which, compared to most other Asian countries is a high figure and as a result there is a very good demand for auto repair businesses in the country. If you are a skilled motor mechanic who is planning on starting your very own auto repair shop in your local area to address this high demand, this article will provide you with a few useful tips that will make your job easier.

Do a market research

The first step of every business venture, no matter what the industry is must be to conduct a market research to gain a comprehensive understanding about the market place and its many elements. If you open you shop to the customers without getting to know them better, drumming up business will prove to be a very difficult task, which will become a serious issue that might even drive the business towards bankruptcy. Start by looking for a well establish enterprise of the same industry in the area, from whom you can gain some useful knowledge about do’s and don’ts in the marketplace. If possible, make the necessary arrangements to sit down with such an entrepreneur and ask for their advice and insights which you can apply to your venture.

Figure out the costs

The cost of starting an auto repair business can be quite high and you must make sure the necessary funds are available at the right time.  The importance of this factor is well emphasized by statistics that show how about 90% of businesses in this industry fail within the first 18 months due to poor management of funds. The initial costs will include that of building rental or construction, equipment such as wheel balancers, car lifts, workshop equipment and a welding machine Singapore auto shops must have, insurance and employee salaries. Most businesses make the mistake of spending all their finances on these initial expenses, after which they are left with nothing to survive the time the comes afterwards. Be smart and carefully allocate the money you have for all possible future costs and if required, do not hesitate to obtain a bank loan to suffice your additional requirements.

The franchising option

For those of you who are demotivated by the high startup costs of automotive businesses and want to get involved in a venture that requires very little of your resources, franchising might be the best option. The franchisor will take care of several aspects of the business and provide you with a ready-made business plan that you only have to manage. The downside to this option however, is the large chunk of monthly earnings they will take away from you. This kind of a business model, if undertaken effectively, will prove to be extremely profitable in the long-run.

 

 

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