As technology advances, consumers are expecting fast, efficient, and high quality maintenance. You'll need a minimum of $50,000 cash as a startup fee. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Generating Funding/Start up Capital for Easy On Oil. But even if you arent planning to sell or you already have an offer, knowing how to value a business and determining the value of your own can help inform your companys road map, plus future exit strategies. 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. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. 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. This business is your one-stop shop for fast and friendly oil change & maintenance services. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. The average price for a multi-point oil change within the quick lube industry is $36.82. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. In fact, with our location distribution we cover the market. 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.). Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. Industry Overview 2. So, most hybrid-electric cars do not ever run on electricity alone. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. It can gather data to . San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. We also plan to leverage an automotive service scheduling software program. Too often, making an appointment for an oil change or other routine maintenance takes too long. If so, read on about what it takes to become one. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. Your best angle is to make a list of the production, property, and resources that comprise your business assets and liabilities, cash and investments, employees and intellectual property. 3. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. 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. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. 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. (IMR Automotive Research), #9. He will be charged with overseeing the sales and marketing of Easy On Oil. (Car Wash Magazine) #7. Subscribe to our Blog. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. She was trained at Ford and later took a position at Chevrolet. buying and selling) over the last 15 years. KEYWORDS oil change Operations Quick Lube. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . The visitor industry provides employment for more than 160,000 people. This process is automatic. Youve come to the right place. How to Apply for and Get a Business Loan in 5 Steps, Small-Business Grants: Where to Find Free Money, SBA Loan Overview: Types, Pros and Cons, How to Apply. ), 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. We have tapped into real estate where our competitors cannot go. 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. While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. 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. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. 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. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. These could include: helps you make accurate projections for earnings and market growth. (Business Wire), #14. These are some of the most efficient cars to ever be driven. (Digital Dealer), #18. From our cost analysis above, we need approximately $560,000 plus $1,200,000 inventory to start Easy On Oil successfully. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. (IBIS World), #3. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. Keep up to date on our new listings and business opportunities. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. Additionally, franchising a business comes with an entirely different set of understandings and obligations. However, youre fully capable of valuing your business using your own resources. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. Our opinions are our own. Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. Regardless of the option you pursue, get the word out with our help. In the United States, about 450 million oil changes are performed each year. 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. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Jiffy Lube International. Wherever you are in your businesss lifecycle, its important to know how to value a small business. On average, 2/3 of business comes from . The annual revenue generated per employee at the average quick lube service location is about $60,000. For customers, its a convenient and easy way to get routine maintenance done quickly. Franchise Quick Lube, Car Wash, and RE in New Mexico! Easy On Oil is an exciting business opportunity that addresses the unmet need of having a spacious quick lube facility that also has a complete automotive parts store. 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. As cars become more complex, even something as simple as changing the oil could require a manual. 1. (NOLN Fast Lube Operators Survey), #23. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Easy On Oil will be managed by its three founding partners. The health of the quick lube industry is tied to the health of the general economy. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. Another 22% of operators combine automotive repair with quick lube services. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. (Car Wash Magazine), #11. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. (Business Wire), #13. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. questions and concerns and Jason was fantastic in answering my questions as well as Along with hybrids, all-electric cars are taking to the streets across the world. 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. All financial products, shopping products and services are presented without warranty. At Easy On Oil, we understand the importance of establishing reliability and consistency in business. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. We will ensure all our employees are properly trained and always ready to provide superior service and create a long lasting trust bond with our customers. 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