Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. Make sure they know by having your license visible front-and-center. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, How to Value a Small Business If Youre Looking to Sell or Buy. (Car Wash Magazine), #11. brokers, but I have to say that I have not worked with a more professional and diligent So, established businesses with stable profitability often use this valuation approach. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Jiffy Lube International. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. People are graciously buying cars and comfort. Figure 1: VVV's Segment Operating Income Since 2015. Short overview of your business or personal finances. The Top Automotive Oil Change Franchises of 2023. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. Understanding code and the relationship that software has with new vehicles will become an essential skill set for anyone working in the auto repair industry in the future. The more thorough you are in this step of the valuation process, the more confident youll be in your calculations. Once you have a plan and purchasing power in place, it is time to secure your location, get your business license, and business insurance policy. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. The average age of a vehicle owned in the United States is 11.4 years. Make sure your company checks these three boxes: You make steady profits. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. 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. Theres a different SDE multiple for every industry. Over half of these competitors offer both auto repair services, although without an inventory store. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. We will give a guarantee on all our repairs for a certain amount of miles or time. What often separates one lube shop from another is its creative marketing strategies. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Maintaining the website with new trends and advises. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . 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. NerdWallet's ratings are determined by our editorial team. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Along with hybrids, all-electric cars are taking to the streets across the world. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. The two PEGs that own Express Oil LLC now have more than 700 stores. Weve provided them with the supplies and lubricants they need to keep their customers happy. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Rounding out this list includes establishing solid relationships with your vendors and distributors, hiring the right people, and promoting your business. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Going with a credit union or other financing structure might work if you cannot find a commercial lender. Home Business Plans Automotive Sector. Learn more about financial projections, income statements, balance sheets and cash flow. One Independent Quick Lube w/RE in El Dorado, KS. The visitor industry provides employment for more than 160,000 people. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. It's called Jiffy Lube Multicare. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. (IBIS World), #2. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? It's likely that any sellers you're working with will want to see your credit report and basic financial profile. 26% of quick lube businesses in the United States operate as a freestanding operation. To start off, there are two major types of electric cars that are on the roads today. 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. 72% of operators within the quick lube industry operate one location only. 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. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, We will attract and maintain a loyal customer base through our customer-oriented focus on business. Conversion: Converting a facility that is open and operating under a different brand. Please enable JavaScript on your browser and try again. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. Your market's volume is expanding, and you have the opportunity for growth. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. Familiarity with your industry is crucial for both buyers and sellers. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. It must also be done for a quick lube business. Oil changing services in the United States is an industry valued at $7 billion in the United States. In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. This segment comprises approximately 25% of our revenue at Easy On Oil. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. If so, read on about what it takes to become one. Additionally, franchising a business comes with an entirely different set of understandings and obligations. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. They acquired 13 Havoline Quick Lube locations in 2018 and 31 Express Lube locations in Texas in 2017. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. First, make a detailed report of your business assets and liabilities. These are some of the most efficient cars to ever be driven. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. 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. Here, business assets include anything that adds value to your company. The most popular brand-name for freestanding businesses is Jiffy Lube. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. text the finished report to the customer's mobile device. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. In any of those cases, buyers will be interested in the individual value of your investments or equipment. 1. We will always stress the fact that we only offer reliable services. Before buyers can confidently make an offer on a business, theyll need to become well-versed (if not an expert) on that businesss industry. 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. Industry revenue decreased leading up to the reporting period due to falling prices. If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. explaining everything in detail. Another 16% of business owners have two locations where they provide services. 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. Order Reprints. To reach our local customer base, we will employ a marketing manager. Here is a list of our partners and here's how we make money. www.ratchetandwrench.com is using a security service for protection against online attacks. Let's #LineItUp from Washington State! As a first time buyer, I had a lot of extra When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Most online business valuation calculators use a variation of the income approach. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. ), 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. However, this does not influence our evaluations. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. (Digital Dealer), #20. Print 1,500 flyers advertising the grand opening of the business, List the website on search engines, local business databases, auto repair shop databases and the Yellow Pages, The principals and additional staff handing out business cards and wearing Easy On Oil shirts to promote the opening, Running ads in the local papers about the grand opening, The grand opening, a five-day event, will consist of a promotion giving introductory branded products, Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices, Printing flyers periodically promoting discounts and new products and posting them in the area. Performing services on brake systems to coolant flushes. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. (Car Wash Magazine), #4. Check out our Website for Services and Coupons! On the sell side, a deep understanding of your industrys trends can help you reach an informed valuation that reflects your business assets as well as the current market. These could include: You'll also need to know your liabilities. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. www.ratchetandwrench.com is using a security service for protection against online attacks. Small companies can compete successfully by owning favorable locations. Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. They are responsible for the direct employment of almost 90,000 people. Do not sell or share my personal information. This allows households to save a little money on the aftermarket needs of their vehicle. Below is a detailed analysis of how we want to spend our startup capital. However, this simple method doesn't always provide the full picture of a company's value. 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. into the automotive business. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. We at Easy On Oil have analysed this and we will favorably compete by focusing on convenience and offering a high level of customer service. The income approach to business valuation determines the amount of income a business can expect to generate in the future. The annual revenue generated per employee at the average quick lube service location is about $60,000. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. 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