Skip to Content

Car Service Center Business Plan [Sample Template]

Are you about starting a car service center? If YES, here is a complete sample car service center business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a car service center. We also took it further by analyzing and drafting a sample car service center marketing plan template backed up by actionable guerrilla marketing ideas for car service centers. So let’s proceed to the business planning section.

If you are interested in starting your own car service centre, it can never be a better time since the market for mechanics is currently showing significant and promising profit gains.

We all know that most drivers in the industry now have cars that are at least 10 years old, which means that the need for a car servicer is growing for more consumers in the industry. It is very important to note that beginning your own car service centre can guarantee or rather give you adequate control over your own hours and allow you to enjoy the advantage of being your own boss.

If you enjoy working on automobiles, then starting a car service centre might be what you’re looking for to remain relevant and enjoy your steady income.

However, the automobile industry has its own economics and is changing with each coming day with the advent of technology. For example, recycling oil is one way automotive dealers, manufacturers and repair shops are helping to preserve the environment.

Additionally, cars are being manufactured to run more efficiently and control emissions that affect the air. Therefore, be wise to write a business plan to serve as a commandment for your business, protect and Make sure that you go according to plan.

A Sample Car Service Center Business Plan Template

1. Industry Overview

We all can attest to the fact that during the Great Recession of 2008-2010 a lot of people felt that the end of the American automobile industry has finally come like the sun setting in the west. But while that real risk was narrowly avoided for the automobile manufacturing industry, what most individuals don’t or have not understood is the huge industry that arrives after the car is manufactured and sold.

We all know that the automotive aftermarket, as against the sales of new cars, performed very well during that economic recession – and is still booming even after the recession. We all know that these machines call automobiles are complex machines that increasingly include sophisticated computers.

But we also know that the said machines are absolutely essential to the majority of the working population, and are always a point of pride for their owners. They needed by both regular and emergency service, replacement parts, paint, cleaning, stereo system installations and a whole lot more.

It is also crucial to note that the automotive aftermarket provides these parts and services, and massively flourishes during economic uncertainty. Because when individuals aren’t buying new cars they are keeping older cars longer.

It is a known fact that the average age of vehicles in the united states is high – and has been climbing steadily over the last several years, and even new cars need regular service but as they get old they need more care and they break down faster than new ones. Service stations and parts retailers both benefit from these particular actions.

It has been estimated that the US automotive aftermarket will be worth $273.4 billion in 2017 – an increase of almost $35 billion in just four years. This we believe puts the aftermarket between 1.5 and 2% of the US Gross Domestic Product.

It is also estimated that over 4.3 million individuals work in the industry and growth is expected frequently in the industry.

We believe that the large and growing fleet of vehicles and their high average age will be the key adrenaline pushing the industry forward. It is also known that older cars need more care and an aging and older national fleet is great news for aftermarket providers.

It has been estimated in the industry that the value of the repair/replacement market for vehicles 0-4 years old is $20.7 billion, but the value of the aftermarket for those 8 or more years old is a whopping $77.3 billion.

2. Executive Summary

Fast Repair Auto Car Services (FRACS) is a new start-up car service centre that offers a complete car service and repair as well as a full-featured retail parts store to the good people of New Orleans, Louisiana. We at FRACS hope to give the people of New Orleans our astounding services with four unique and convenient locations.

We at FRACS plan to grow our venture into a business with outstanding sales by year three and also create a substantial clientele base. We at FRACS understand how competitive the market is and how hard it tends to get, but we believe that only us will be offering the unique service we hope to offer.

We also plan to differentiate our business completely from our competitors by not only offering a hassle-free repair service, but a fully stocked parts store and other car related services.

We hope that not only will this serve a wide range of customers for both service and parts, but the parts department will support the service department by allowing the service department to turnaround jobs far faster than the competition with generally all of the needed parts in stock and on location.

We at FRACS plan to also differentiate our astounding business by having 12 bays at every location we establish. We believe that this will offer incredible value to customers who need their cars fixed right away. We at FRACS do not entertain the idea of wait for service and parts.

We also hope to offer our clients unlimited shuttle service for repair which will make the entire service experience as painless and convenient as possible. We at FRACS will also attract and maintain a loyal customer base through our customer-oriented focus on business.

We also want to make it known that all our employees are trained and held In charge of  providing superior service, building a long lasting trust bond with clients. Because we believe it is very important in the car service centre industry.

3. Our Products and Services

We believe that we have the core competencies within our large workforce to work on all makes and models of domestic and foreign vehicles brought to our service centre. We believe that with twelve service bays at each location, and all our employees dedicated to offer superior customer service, we will be known as the solution to any car problem.

We will always strive to be accurate and honest with customers in terms of quoting cost estimates and repair completion time estimates in order to gain their trust and acceptance. We believe that our employees will always focus on delivering what they promise to our customers at any expected time.

FRACS is dedicated to build a lasting strong customer relationships based on trust and integrity, which we believe will be the catalyst in establishing a strong regular customer base in the industry. FRACS hopes to offer these various kinds of services:

  • Car wash
  • Mechanical job like engine, gear, accelerator, shock-absorber etc.
  • Electrical job like horn, light etc.
  • Car air conditioner service
  • Wheel balancing and alignment
  • Sell of car parts and accessories
  • Several oil change service like engine oil, gear oil, steering oil etc.
  • Car body repair service like painting and denting
  • Battery service
  • Car body polish service

4. Our Mission and Vision Statement

  • Our vision at FRACS is to build a standard and world class car service centre with breath taking services and brand that will serve not only the good people of New Orleans, but the United States of America.
  • Our mission at FRACS is to offer high-quality car services and a full range of auto parts to our prospective customers. We at FRACS hope to focus on personalized service channelled to our customers by offering convenience and rapid service which will make us the leading figure in the market.

We at FRACS believe that we are technologically savvy with computerized monitoring of all parts inventory, to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. We at FRACS can also boost of having a strong vendor relationships with the most service conscious vendors who can go to the limit in order to ship major parts rapidly to us.

Our Business Structure

FRACS believe that we have a strong management team that will allow us to actualize and execute our goals and visions. It is very important to note that FRACS have four founding partners, Ernest Brighton, Donald Meth, Wesley Shinuf, and Luke Chin. Ernest Brighton has a background of sales, 15 years of working with Chevrolet.

We believe he will be in charge of the sales and marketing for FRACS. Donald’s core experience is from the management from Advent motors where he was a Vice President in charge a department of 306workers. Wesley is also a product of the auto industry, specifically the car service industry. He spent 8 years at Nino palmers Dealers and then 6 years at Toyota.

He enjoys and participated in multiple roles within the business allowing him to bring to credit FRACS with multiple skills and experience.

However, Luke Chin popularly known as the Oracle of Shanghai brings an astounding 15 years of finance, investment and administration experience to FRACS. Luke was trained in China but later established Chin transcorp, a real estate firm based in Louisiana. He is also known for his unique eye for investment and proper business management.

FRACS believes that our business is an exciting business opportunity that settles the huge need of having a full car service centre that also has a complete retail parts centre. We believe that these distinct services will have benchmarked customer service, something that the industry is not known for having.

We at FRACS believe that our business will be led by a seasoned management team comprising of our four founding partners and other employed workforce, all of whom have extensive industry experience to push us to the top. The portfolios include:

  • Chief Executive Officer
  • Service Supervisor
  • Human Resources and Admin Manager
  • Sales and Marketing Executive
  • Accountant
  • Car Service Engineers / Technicians (12)
  • Car wash Attendant
  • Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • In charge of providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • In charge of signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Service Supervisor

  • Serves as project manager of the organization; works directly with employees
  • Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Makes certain that the auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
  • Make sure that the organization works in line with international best practices.

Human Resources and Admin Manager

  • In charge of overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • In charge of training, evaluation and assessment of employees
  • In charge of arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyse the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • In charge of handling business research, market surveys and feasibility studies for clients
  • In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Creates new markets cum businesses for the organization
  • Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier

  • In charge of preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • In charge of financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • In charge of developing and managing financial systems and policies
  • In charge of administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the business
  • Serves as internal auditor for the business

Car Service Engineers and Technicians (12}

  • Repairs and replaces automotive engines
  • Performing general automotive repairs
  • Handles Power train repair services
  • Handles Brake repair services
  • Scheduled and preventative repair and maintenance services
  • Repairs trucks
  • Keeps and swaps automotive exhaust systems
  • Maintains and replaces mufflers
  • In charge of car body maintenance and repair
  • Maintains automotive transmissions
  • Repairs automotive brakes
  • Implements automotive electric repairs
  • Implements automotive wheel alignments
  • Repairs automotive radiators
  • Handles wheel alignment and repair services
  • Handles other repair and maintenance services

Car wash attendant

  • Dusts loose dirt and wash cars off with water
  • Makes sure that car windows and doors are properly secured before dusting and washing
  • Adjusts water pressure in hoses to Make sure that no damage occurs
  • Mixes soap and water in appropriate quantities
  • Uses cloth or sponge to soap cars and wash them down
  • Makes sure that windscreens are not scratched during the soaping procedure
  • Hoses down cars properly and make sure that no trace of soap is left behind
  • Dusts the interior of the car and make sure that any trash is disposed-off properly
  • Polishes interior surfaces and vacuum carpeted area inside the car
  • Makes sure that the roof of the car is cleaned or wiped according to instructions
  • Waxes and polishes the car from the outside
  • Makes sure that the car is properly dried from the inside and the outside
  • Puts back placemats after dusting, washing and drying them
  • Drives cars through the car wash area when specifically instructed by car owners
  • Makes sure that any accessories taken out of the car during the car wash procedure are put back before handing the car to the owner

Client Service Executive

  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Makes sure s that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Serves as a auto parts sell attendant
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to Make sure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

The primary service offered by is at FRACS is the general repair of automobiles for the general public. We at FRACS will have the ability to service most domestic and foreign automobiles. We at FRACS plan to maintain an extensive shop which can fix any automotive issue.

We will also generate income from both the sale of the mechanic’s labour and the sale of after-market parts which may be needed for the repairs. We have adequate plans to make our business the best in the industry, which is why we contacted Access Business Consultants to do our SWOT Analysis for us.

Access Business Consultants are known for the experience and agility they posses in terms of business consulting and analysis. They were very thorough with their dealings and outlined below is a summary of the SWOT Analysis they conducted for us:

  • Strength

According to our SWOT Analysis, the strength of FRACS rests on the power, dedication and experience of our workforce. Our team at FRACS comprises of individuals who understand the automobile industry in and out, they have been in the industry and they understand the changing trends and the quality of innovation needed to stay relevant in the industry.

They also have been put through specialized monitored training that will boost the approach to customers and adequate understanding and adjustment to situation.

  • Weakness

It was very easy to note in the SWOT Analysis that the industry we are into is very competitive. It was also noted that our weakness include the time it might take us to  development an identity and consumer brand acceptance, develop and execute effective marketing communications, Identify and execute ongoing affiliate revenue generation, advertising, and ecommerce revenue stream. We believe all these are issues we can handle properly and very fast.

  • Opportunities

Our SWOT Analysis noted that the automotive industry is a huge, diverse set of manufacturing and service businesses that bring cars and trucks to market, keep them in working order, paint, clean, fix and even trash them when it’s time. It stated that the industry will keep growing and we remain an important aspect of the US economy.

  • Threat

Our SWOT Analysis noted that just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new car service centre in same location where our target market exist and who may want to adopt same Business model like us.


  • Market Trend

We at FRACS understand how the car service centre industry works and how fast things change. We understand the trend in the industry, which is why we have put it on ourselves to outline them in our comprehensive business plan. They trends in the industry, both old and new, will be properly considered at FRACS, and they include:

  • The increase in complexity of vehicles often requires specialized training. Repair shops can gain an edge by specializing and staying current. However this specialization is leading to a shortage of trained techs in the market.
  • Electric and hybrid cars are bringing new opportunities to market– service, parts, and fuel businesses will need to expand to support these trends.
  • Service providers are now able to leverage technology to gain marketing efficiencies. For example, timely reminders about snow tires and oil changes have already proven to provide an uptick in return business.
  • New cars are getting more reliable. Improvements in technology and materials are increasing useful life and requiring fewer services. New cars, in other words, are able to last longer with less money spent in aftermarket services. Some automobile manufacturers are even recommending longer intervals between standard maintenance services such as oil changes or tire rotations.
  • On the flip side, people do wash new cars more frequently!
  • There are a lot of cars on the road, and keeping them running, keeping them clean and making them your own is big business. This breadth of opportunity and such strong market trends make 2016 an exciting time to get involved!

8. Our Target Market

We at FRACS have conducted a market survey and feasibility studies and we believe that there is a vast range of both corporate and individual clients who would need the services of a car service centre, which we hope to offer with breathtaking services.

We have also created strategies that will help us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

  • Banks, Insurance Companies and other related Financial Institutions
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Transport Companies
  • Haulage Companies
  • Individuals and households
  • School with transportation system for students

Our competitive advantage

Our competitive at FRACS rests on the vision and unity of our partners, who understand better than many of their rivals that a service visit does not just include repairing a client’s car; it inculcates the entire service experience from the first time a client talks to their mechanic until they decide to stop driving.

We at FRACS understand perfectly that the long-term profitability of a service firm of this type lies in the repeat customer that finds our services unique and enjoy our excellent experience, even if they must have suffered an inconvenient breakdown.

We all FRACS believe that we will seek to examine every aspects of the service experience to look for ways to improve our customer satisfaction. Also, we believe that all our employees will be rigorously trained and retrained to think about customer satisfaction in order to create a self-sustaining company culture that revolves around this issue at FRACS.


  • Sources of Income

Just we stated above, the primary service to be offered by FRACS is the general service of automobiles for the general public. We believe that we will have the ability to service most domestic and foreign automobiles. We also plan to maintain an extensive shop and outlets which can fix any automotive issue.

We will generate income from both the sale of the mechanic’s labour and the sale of after-market parts which may be needed for the repairs. Below is the outline of the services we will offer and make income from them:

  • Car wash
  • Mechanical job like engine, gear, accelerator, shock-absorber etc.
  • Electrical job like horn, light etc.
  • Car air conditioner service
  • Wheel balancing and alignment
  • Sell of car parts and accessories
  • Several oil change service like engine oil, gear oil, steering oil etc.
  • Car body repair service like painting and denting
  • Battery service
  • Car body polish service

10. Sales Forecast

We at FRACS understand perfectly that the car service centre industry is, operationally, a job-shop environment; it is somewhat difficult to estimate sales. For job-shops, each individual product or service is tailored or unique to that job, and is only initiated once an order is made.

However, our sales projections reflects the professional opinion of our sales and marketing team who believe that in how much we make at FRACS will depend solely on the following assumptions:

  • The number of clients out founding workforce can attract from their previous companies.
  • The outcome of planned promotions and word-of-mouth marketing.
  • Current prices and costs of doing business.
  • The types of automobiles and jobs that will occur in every month.

Yet we believe in the strength of our workforce, which even our SWOT Analysis noted and we believe that we are built on the foundation of success. Our sales and marketing team noted that definite sales projections cannot be analysed, given the prospect of the industry we are into, but are very prepared to shoot FRACS to the top.

  • Marketing Strategy and Sales Strategy

It is utmost goal at FRACS to become the local leader in quality and service experience of all the small car service centre business within the New Orleans area while also striving to keep a low cost plan.

We believe that once a reputation for quality and service experience has been created, and a strong network of referrals is attracting new business, we at FRACS plan to re-evaluate all our strategy and positioning within the market to see if a differentiation strategy is viable.

We believe that this will allow us at FRACS to increase prices and raise profit margins in relation to our competitors on the industry.

We believe that this process is will help us achieve long-term growth until we at FRACS can reach a regional scope of operations. We at FRACS have a simple, direct and modest program of marketing our breath taking services to our target market that includes the following:

  • Direct mailers.
  • Newspaper ads.
  • Yellow pages.
  • Referrals through other local businesses.

We believe that each of these marketing aspects has the benefit of being low cost and creating service awareness that will catapult us into limelight. Our long-term marketing goals at FRACS is to use local radio and TV ads in making sure that people know what we do and where we offer them.

We at FRACS also hope to consider the possibility of having a grand opening program that would feature discounts, food, a local radio disc jockey, and other promotional ideas, and we hope we will actualize it because it is a diehard marketing strategy.

11. Publicity and Advertising Strategy

We understand how competitive the industry is and the level of importance attached to publicity, which is why we expect that a significant number of our founding partners and employees pre-existing clients (both personal and where they worked) will desire to switch to FRACS retain the services of their personal mechanics who they believe understand how they automobiles function.

We believe that this will provide a sufficient income until we at FRACS can build up a brand affinity or reputation and see our marketing program take effect in the entire industry. We at FRACS believe that our publicity and advertising strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages.

We at FRACS do not intend to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after year five, but we will leverage some approaches to boost our brand awareness and they are;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our Bill Boards on strategic locations all around New Orleans
  • Engage in road show from time to time in targeted neighbourhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of FRACS and the services we offer
  • List our auto repair, servicing and maintenance business in local directories / yellow pages
  • Advertise our auto repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

We at FRACS understand that we exist in a purely competitive environment where each business must be a price taker. This simply means that a business that has no ability to affect the market price of its services, regardless of how many automobiles it services is destined for a crash.

Therefore, putting it, that marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, we at FRACS can service automobiles at total capacity without affecting the price in the market.

All these simply mean that we at FRACS must strive or look to charge our clients at the market price (or lower). It has been estimated that the average price is approximately $400 per vehicle, and we understand that as long as marginal costs do not surpass revenues, the method to increase short-run profits is to service automobiles at maximum capacity.

  • Payment Options

Having done our research and studies, we understand that payment options are the forces that bring a car service centre closer to the heart of the people, and we hope to make use of that extensively. We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.

  • Payment by via bank transfer
  • Payment via POS machine
  • Payment via online bank transfer
  • Payment via mobile money
  • Payment with cash

To provide all these outstanding services, we have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

13. Startup Expenditure (Budget)

We at FRACS understand that no matter how breath taking your ideas and goals might be or how attractive your business plan might be, without proper and enough financing your ideas are just like water poured on a rock.

In every business enterprise fund is a big ingredient that can move a business to the limelight and without a detailed business plan; a business won’t be able to land substantial funds from prospective investors. We have analysed the market and have decided on how we plan to spend our start up fund. These are the key areas where we will spend our start – up capital on;

  • Business incorporation fees in the United States of America will cost – $750.
  • The budget for Liability insurance, permits and license will cost – $3,500
  • Acquiring a garage facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
  • The amount required to purchase the needed tool box and repair equipment – $25,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
  • Amount required to purchase the needed software applications to run our business – $3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

From our detailed cost analysis above, we will need approximately two hundred and fifty dollars ($250,000) to start FRACS. All our partners are inclined to raise this fund and build a standard business.

Generating Funding / Start up Capital for Fast Repair Auto Car Services (FRCS)

FRACS is a new car service centre business formed or that have four founding partners, Ernest Brighton, Donald Meth, Wesley Shinuf, and Luke Chin. We are the sole owners and operators of the business and they intend to remain so till further notice.

We have been able to raise the required funds need to start FRACS from personal savings. We intend to build a business that will take over the market completely while also giving customers what they want. Their objectives is to make sure sales revenues increase steadily through year three and also to institute a program of superior customer service through rigorous evaluation of service experience.

14. Sustainability and Expansion Strategy

We at FRACS understand that in the car service industry, every business builds its client base one customer at a time and mostly through word of mouth marketing.

Which is why we will also strive to keep our customers with our High-quality work, constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress, and employ intelligent mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.

We also understand that the industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.

We understand perfectly that suppliers have a great deal of power in setting and negotiating the prices of their products and services to car service shops. We believe that this is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies.

We believe that these companies are more consolidated that the car service industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to the car service industry.

This only goes to mean that these companies can set whatever price they wish to. Also, the barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exit the market are low.

The large number of competitors in this field including substitutes means that the pricing for such services are very competitive. We believe that the only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

Also the technological revolution in computers has enhanced our abilities to diagnose and repair our client’s vehicles. We at FRACS have put all these into consideration and believe we will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop.

We will continue to seek new ways to provide a better service through technology and also remain vigilant for new trends.


  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress