Many dented and wrecked vehicles come into auto body shops at a fast pace during the winter months when snow and ice make driving hazardous. Even when the streets aren't slick, these shops are often busy since people make mistakes while driving and cause accidents. For this reason, owning your own shop can be a lucrative business--as long as you follow the steps for start an auto body shop.
Instructions
1. Gain experience repairing vehicles. Before you open your own shop, you'll want to make sure you have experience in repairing vehicles that have damage to their body. You can get this experience through working at another body shop or serving as a student in an auto body collision and repair program at a local community college or technical school.
2. Register your business with the federal and state government. Register with the federal government via the IRS and obtain an employer identification number (EIN). Your state will require you to fill out the forms necessary to collect and provide sales tax to the state on the services you provide for your business. In addition, you may need to register with your city or county. This may entail applying for a business license, paying a licensing fee and registering for the collection of sales tax.
3. Acquire funding. Starting an auto body shop can be expensive since you must find a facility and buy any equipment you need to fix vehicles in a correct and professional manner. You can apply for a loan from a bank or other lender to cover the start-up cost, but you should know that you will need a well-written business plan to get funding from a bank in most cases.
4. Find a facility. The facility size you will need for your auto body shop depends upon how many employees you expect to have and the number of cars you aim to repair on a weekly or monthly basis. Many auto body shops start small with only one or two bays and then expand once they begin to get more customers. You do have the option to rent or buy an auto body shop. Thus, you will need to weigh the pros and cons of both sides in advance.
5. Purchase equipment. There are a number of items that you will need to purchase for your auto body shop. Hoists, lifts, paint booths, paint guns, engine stands, dent pullers, pressure washers, powder coating systems and wheel balancers are just some of the things you may need to buy.
6. Arrange to accept insurance payments. Most people bringing their vehicles into your auto body shop will be filing a claim with their insurance company to cover the cost of the repair. You should become registered as an approved auto body shop with the top insurance companies drivers in your community have. This makes it easier to do business with them, and it may lead to referrals that bring in new customers to your shop.
7. Hire employees. Prior to opening your shop you want to hire some employees to help you out. Often having at least one other employee skilled in repairing damage to vehicle bodies can be beneficial since it allows you to get more vehicles repaired and grow your shop. You might also consider hiring office staff to answer the phone, manage the financials and order parts and supplies, as well as an estimator to meet with potential customers and provide them with quotes as to what it would cost to fix their vehicles.
8. Advertise and market your business. This is important in order to get customers coming through your door. Most people don't pay attention to advertisements for auto body shops until they need one, which is why you may find it beneficial to advertise in the Yellow Pages, online or even on the radio during traffic report broadcasts.
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