Are you about starting a vehicle testing station? If YES, here is a detailed sample vehicle testing station business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a vehicle testing station. We also took it further by analyzing and drafting a sample vehicle testing marketing plan template backed up by actionable guerrilla marketing ideas for vehicle testing companies.

A vehicle testing station is a business that leverages on technology to detect faults in vehicles without any trial and error approach. As long as people use their cars and trucks regularly, there will always be reasons for them to visit a vehicle testing center if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.

If you are interested in starting your own vehicle testing station in the united states, then you would be required to own a license. If this applies to you, be sure to get all the training and documentations needed in the industry.  Below is a sample vehicle testing station business plan template that will help you successfully write yours within record time.

A Sample Vehicle Testing Station Business Plan Template

  • Industry Overview

Vehicle testing station business is amongst the highly thriving, profitable and easy to setup auto services related business idea an entrepreneur can successfully start. All over the world, car testing and repairs are part of the businesses that never goes into extinction.

This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future car testing and repair would be inevitable. Vehicle testing stations or auto diagnostics centers carry out diagnostic services that indicate issues associated with transmission, oil tank, gas tank, exhaust system, and other vehicle components.

It can also indicate ignition timing problems, level of combustion buildup in the engine, fuel injector performance, engine rpm levels, condition of the ignition coils, air and coolant temperature, crankshaft, and camshaft position and throttle opening. In other words, it tells your mechanic it’s time for a car tune-up.

The Auto Repair Shop industry that vehicle testing station is a part of is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry, revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops account for a large percent of the players in the industry.

The Auto Repair Shop industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth. Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.

Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Statistics has it that the Auto Repair Shop industry in the United States of America, is worth $58bn, with an estimated growth rate of 1.4 percent. There are about 251,016 registered and licensed auto repair garages in the United States and they are responsible for employing about 530,978 people.

Over and above, the vehicle testing station business is very open to any aspiring entrepreneur who has acquired the required training, skills and perhaps professional certifications to start his or her own vehicle testing business.

Vehicle Testing Station Business Plan – Executive Summary

Carwyn Global® Vehicle Testing Station, LLC is registered in the United States of America. We have been able to secure a standard and well – positioned garage in a central and busy district in Broken Arrow – Oklahoma.

We are a vehicle testing station that is set to compete in the highly competitive and fragmented auto repair and maintenance service industry not only in Broken Arrow – Oklahoma, but also throughout the United States market because we intend opening our outlets in key cities across the United States.

Carwyn Global® Vehicle Testing Station, LLC will offer auto diagnostic services that indicate issues associated with the transmission, oil tank, gas tank, exhaust system, and other components.

We can also indicate ignition timing problems, level of combustion buildup in the engine, fuel injector performance, engine rpm levels, condition of the ignition coils, air and coolant temperature, crankshaft, and camshaft position and throttle opening for cars, trucks, vans and trailers et al.

Our business goal is to become one of the leading vehicle testing stations in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers are going to be selected from a pool of certified and highly experienced automobile engineers and technicians in and around Broken Arrow – Oklahoma and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company and to compete with leading vehicle testing stations in the United States.

At Carwyn Global® Vehicle Testing Station, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Carwyn Global® Vehicle Testing Station, LLC is founded by Engr. Phil Lowe, an auto mechanical engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr.). He has the required experience that can help build Carwyn Global® Vehicle Testing Station, LLC to favorably compete with leaders in the industry.

  • Our Services Offerings

Carwyn Global® Vehicle Testing Station, LLC was established with the aim of maximizing profits in the vehicle testing business. We want to compete favorably with leading vehicle testing stations in the United States which is why we have put in place a competent quality assurance team that will ensure that every diagnostic services carried out meet and even surpass our customers’ expectations.

We will work hard to ensure that Carwyn Global® Vehicle Testing Station, LLC is not just accepted in Broken Arrow – Oklahoma but also in other cities in the United States of America where we intend opening our vehicle testing stations. We will offer vehicle testing services for;

  • Transmission, oil tank, gas tank, exhaust system, and other components. It can also indicate ignition timing problems, level of combustion buildup in the engine, fuel injector performance, engine rpm levels, condition of the ignition coils, air and coolant temperature, crankshaft, and camshaft position and throttle opening.
  • Other related auto diagnostic services

Our Vision Statement

Our vision is to establish a standard and world class vehicle testing station whose services and brand will not only be accepted in Broken Arrow – Oklahoma but also in other cities in the United States of America.

  • Our Mission Statement

Our mission is to carry our vehicle diagnostic services that will help our customers scan their vehicles for faults. Our service is like running a health scan on systems within the car to give the breakdown of problems. We want to build a vehicle testing station that can favorably compete with other leading brands in the automobile maintenance and repair services industry.

  • Our Business Structure

Carwyn Global® Vehicle Testing Station, LLC intends starting small in Broken Arrow – Oklahoma, but hopes to grow big in order to compete favorably with leading vehicle testing stations in the industry in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own which is why we are committed to only hire the best hands within our area of operation.

At Carwyn Global® Vehicle Testing Station, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Vehicle Testing Station Supervisor
  • Human Resources and Admin Manager
  • Sales and Marketing Executive
  • Accountant
  • Auto Diagnostic Engineers/Technicians (10)
  • Client Service Executive

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Vehicle Testing Station Supervisor:

  • Serve 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.
  • Make certain that the vehicle testing station department perform efficiently, coordinate employee efforts, and facilitate communications between management and auto diagnostic engineers and technicians
  • Ensures that the organization work in line with international best practices.

Human Resources and Admin Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Create new markets cum businesses for the organization
  • Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Carwyn Global® Vehicle Testing Station, LLC
  • Serves as internal auditor for Carwyn Global® Vehicle Testing Station, LLC.

Auto Diagnostic Engineers and Technicians

  • Responsible for handling auto diagnostic services that indicate issues associated with the transmission, oil tank, gas tank, exhaust system, and other components. It can also indicate ignition timing problems, level of combustion buildup in the engine, fuel injector performance, engine rpm levels, condition of the ignition coils, air and coolant temperature, crankshaft, and camshaft position and throttle opening for cars, trucks, vans and trailers et al.
  • Handles any other duty as assigned

Client Service Executive

  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, 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 services
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Vehicle Testing Station Business Plan – SWOT Analysis

Carwyn Global® Vehicle Testing Station, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured vehicle testing station business that can favorably compete in the highly competitive industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Carwyn Global® Vehicle Testing Station, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Carwyn Global® Vehicle Testing Station, LLC;

  • Strength:

Our core strength lies in the power of our team; our workforce. We have a team of certified automobile diagnostic engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the industry.

  • Weakness:

As a new vehicle testing station in Broken Arrow – Oklahoma, it might take some time for our vehicle testing station to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

The opportunities in the auto maintenance and repair industry are massive considering the number of individuals and corporate organizations that own automobile in the United States. As a vehicle testing station, we are ready to take advantage of any opportunity that is available in the industry.

  • Threat:

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 vehicle testing station in same location where our target market exists and who may want to adopt same Business model like us.

Vehicle Testing Station Business Plan – MARKET ANALYSIS

  • Market Trends

One good thing about the vehicle testing station business is that, it is an open industry hence a low level of market share concentration. Even though large automobile diagnostic companies operate in the industry, but revenue is also spread among thousands of small vehicle testing stations.

As a matter of fact, no single vehicle testing station can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller vehicle testing stations account for a large percentage of players in the industry.

Individuals and businesses have increased demand for auto diagnostic and repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for vehicle testing stations and auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

It is now becoming trendy to find automobile engineers and technicians who do not have the required finance to rent a shop opting for mobile vehicle testing business; they are known to move around especially on highways with their complete auto diagnostic equipment looking for broken down cars, trucks and vans et al to fix.

  • Our Target Market

Before starting our vehicle testing station in Broken Arrow – Oklahoma, we conducted a market survey and feasibility studies and we are certain that there is a wide range of clients who would need the services of vehicle testing stations especially haulage companies and transport companies. Below is a list of the people and organizations that we will specifically market our services to;

  • Corporate Organizations
  • Distributors
  • Transport Companies
  • Haulage Companies
  • Individuals and households
  • School with transportation system for students

Our competitive advantage

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the vehicle testing line of business; but one thing is certain, there is room big enough to accommodate all stakeholders no matter their capacity.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained automobile diagnostic engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

Vehicle Testing Station Business Plan – SALES AND MARKETING STRATEGY

We are mindful of the fact that there are stiff competitions in the vehicle testing station line of business, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Carwyn Global® Vehicle Testing Station, LLC.

Our corporate goal is to grow Carwyn Global® Vehicle Testing Station, LLC to become one of the top 10 vehicle testing stations in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Broken Arrow – Oklahoma but also in other cities in the United States of America.

Carwyn Global® Vehicle Testing Station, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our vehicle testing station by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, organizations and key stake holders
  • Promptness in bidding for vehicle testing contract from the government, haulage companies, transport companies and other organizations
  • Advertise our business in relevant business automobile magazines, newspapers, TV and radio stations
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

Carwyn Global® Vehicle Testing Station, LLC is established with the aim of maximizing profits in the vehicle testing business and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients. Carwyn Global® Vehicle Testing Station, LLC will generate income by offering vehicle testing services for;

  • Transmission, oil tank, gas tank, exhaust system, and other components. It can also indicate ignition timing problems, level of combustion buildup in the engine, fuel injector performance, engine rpm levels, condition of the ignition coils, air and coolant temperature, crankshaft, and camshaft position and throttle opening.
  • Other related auto diagnostic services

Sales Forecast

One thing is certain, there will always be individuals and companies who need to take their cars, vans, and trucks et al for routine vehicle testing.

We are well positioned to take on the available market in the vehicle testing line of business and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow our vehicle testing station to enviable heights.

We have been able to examine the automobile maintenance, servicing and repair market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Carwyn Global® Vehicle Testing Station, LLC. It is based on the location of our business and of course the wide range of services that we offer;

  • First Fiscal Year (FY1): $250,000
  • Second Fiscal Year (FY2): $350,000
  • Third Fiscal Year (FY3): $650,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

At Carwyn Global® Vehicle Testing Station, LLC we will keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from cleints who would steadily bring in their automobiles for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.

  • Payment Options

The payment policy adopted by Carwyn Global® Vehicle Testing Station, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Carwyn Global® Vehicle Testing Station, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards/Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part.

Vehicle Testing Station Business Plan – Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate and individual clients in the whole of Broken Arrow – Oklahoma and other cities in the United States of America where we intend opening our vehicle testing stations which is why we have made provisions for effective publicity and advertisement of our vehicle testing station.

Below are the platforms we intend to leverage on to promote and advertise Carwyn Global® Vehicle Testing Station, LLC;

  • Place adverts on both print (newspapers and auto magazines) and electronic media platforms
  • Sponsor relevant community – based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
  • Install our billboards in strategic locations all around Broken Arrow – Oklahoma
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of Carwyn Global® Vehicle Testing Station, LLC and the services we offer
  • List our vehicle testing station 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.

Vehicle Testing Station Business Plan – Financial Projections and Costing

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a vehicle testing station; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Carwyn Global® Vehicle Testing Station, LLC in the United of America;

  • Business incorporating 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 vehicle testing and diagnostic 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
  • The amount needed for launching an official Website will cost – $600
  • The amount needed 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

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard vehicle testing station in the United States of America.

Generating Funds/Startup Capital for Carwyn Global® Vehicle Testing Station, LLC

Carwyn Global® Vehicle Testing Station, LLC will be owned and managed by Engr. Phil Lowe. He is the sole financier of the business which is why he has decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings and sale of his stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

VEHICLE TESTING STATION BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a company, then it won’t be too long before the business closes shop.

One of our major goals of starting Carwyn Global® Vehicle Testing Station, LLC is to build a business that will survive off its cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our vehicle testing services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Carwyn Global® Vehicle Testing Station, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if all these are put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Securing a standard office facility for our diagnostics station: Competed
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founders: Completed
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Purchase of auto diagnostic tools and equipment: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in various industries: In Progress
Joy Nwokoro