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Within an auto repair shop, data serves many functions: streamlining day-to-day operations, helping service advisors and tracking a shop’s cash flow. But you can also harness the power of data to plan for the future. In fact, strategically leveraging data can help you determine when it is time to open a new location. Think of it as your roadmap to multi-shop success. Data helps you every step of the way, from optimizing your existing business, to creating a plan for a new shop, to maximizing workflow across all locations.

Looking at the Big Picture: The New Location Roadmap

When you start planning for a new location, your strategy should prioritize the big picture of your business, allowing you to strategically determine the process for opening the next shop. Key metrics and analytics can help you monitor your business performance and plan for both the long- and short-term future. Whether you are expanding for the first time or the tenth, leveraging data can help make the process smooth, strategic and simple. It’s as straightforward as 1… 2…3: 

1. Getting Started: Make Your First Location the Best It Can Be

Before opening a new location, ensure your existing shop is optimized. Your goal is to maximize efficiency and productivity, so you can replicate the process at a new location. Take a good, hard look at your numbers, and be honest with yourself about your business performance. Some key questions to ask include:

• What are your ARO and car count, and can you increase them?
• How many repeat customers do you have versus new customers?
• How effective are your mechanics at completing their work? 
• Will adding another mechanic or bay be enough to support my current levels of business growth?
• How frequently are customers approving your full estimate or returning for follow-up work on previously declined jobs?

Once you have determined that your existing business is performing at the highest level possible, you are ready for the next step.

2. Creating a Plan: Determine Criteria for Your New Location 

As you look to add a location, it is important to identify your business needs and the assets you have available. Data from your existing location(s) is key to this step. Not only can you analyze business performance to determine your financial ability to open a new shop, but you can also identify opportunities with new customers to target or niche services to offer.   

For example, if your existing location is overwhelmed with customers seeking same day or next day service, another shop might be the solution. Or, if you are targeting customers in a different area of town, building or buying another location closer to the population you are targeting might draw them in. Here are some questions to ask when determining the criteria for a new location:

• Have I maximized the efficiency of my existing location(s)?
• Can I afford to build a brand-new shop, or should I buy an existing business?
• What is my close rate at my existing location(s)?
• What demographic am I targeting, and how can I meet their needs with this new location?

3. Setting Up for Success: Use Tekmetric Multi-Shop to Maximize Workflow 

Once you have multiple locations, it is critical that you maximize workflow between all locations. You can compare locations using Tekmetric Multi-Shop to monitor performance, track key metrics and determine each location’s strengths and weaknesses. A good question to ask yourself is: how can I leverage each location’s strengths to support continued business growth? 

First, ensure that you have replicated the optimized processes from your original location(s) at the new shop. You have worked hard to ensure your business was performing at the highest level possible before opening a new location – make sure to keep that momentum moving!

Second, play to the strengths of each location so they support each other. For example, determine which locations are high versus low volume to maximize your technicians’ time at all locations. If one shop is a high-volume location overwhelmed with work, you can leverage a lower volume location by moving some cars there for same-day repairs. Just don’t forget to move the cars back to the original location for the customer’s convenience! 

The idea of multiple auto repair shop locations can seem daunting, but by maximizing your data, you can simplify the process to ensure you are prepared for the next step. First, put all your efforts into running a top-tier business with your existing location(s). Once you are satisfied with your performance, utilize data to establish a clear plan for opening your next location. Finally, use tools like Tekmetric Multi-Shop to maximize workflow and leverage each location’s strengths to support the overall business. This approach will maximize your productivity and efficiency across all your locations, increasing your overall bottom line and keeping customers satisfied. 

Starting a mechanic shop is one of the most rewarding moves you can make in your career. The auto repair industry continues to grow, and whether you're a seasoned veteran or a newcomer with a solid vision, opening an automotive repair shop can lead to a thriving small business with long-term success. But like any worthwhile venture, it all begins with a solid plan and a deep understanding of what it takes to turn your technical skills into a profitable auto repair business.

In this guide, we'll walk you through the key steps and considerations for launching your own auto mechanic shop, from writing a business plan to hiring your first technician. Whether you're dreaming of a full-service car repair shop, a mobile mechanic business, or a specialty shop, these tips will help you lay a strong foundation.

1. Form a business plan

Every great mechanic business starts with a solid business plan. This is your roadmap—your blueprint for success. A comprehensive auto repair shop business plan should detail everything from your services (like oil changes, diagnostics, or engine rebuilds) to your target market, competition analysis, pricing strategies, and long-term growth goals.

There are nine steps to creating an automotive repair shop business plan that will help you achieve your business goals—from owning one auto repair shop to becoming a multi-shop owner.  

1. Write an executive summary
2. Describe your shop
3. State your business goals
4. Describe your products and services
5. Do your market research
6. Outline your marketing and sales plan
7. Perform a business financial analysis
8. Make financial projections
9. Create a plan for growth and expansion

Your business plan should also identify your niche: Will you cater to performance cars or offer quick turnaround auto repair services? The more specific your direction, the easier it’ll be to attract the right potential customers and stand out in a competitive market.

2. Legal entity setup

Once you have created your master business plan, you should start on your legal entity setup. Choosing the right business structure for your mechanic shop impacts everything from taxes to liability to how you pay yourself.

For most shop owners, a limited liability company (LLC) offers a smart balance of protection and flexibility. It separates your personal assets from your business liabilities, which is key in the event of lawsuits or debts.

That said, sole proprietorships and corporations also have their place. It’s wise to consult with a business attorney or accountant to understand which business structure best fits your goals and risk tolerance.

Once you’ve picked a structure, you’ll need to register your business name with the state and secure an Employer Identification Number (EIN) from the IRS.

3. Start up funding

Getting your mechanic shop off the ground isn’t cheap. Between diagnostic equipment, insurance coverage, car lifts, rent, and employee salaries, startup costs can quickly add up. Whether you’re building from scratch or taking over an existing auto repair shop, you’ll likely need some outside funding.

The Small Business Administration (SBA) is a great place to start. They offer affordable business loan options for entrepreneurs, particularly those opening a small business. You might also explore equipment financing, credit lines, or partnerships with investors.

When seeking funding, having a clear business plan will be essential. It shows lenders and backers you’re serious, prepared, and capable of making your auto repair business profitable.

4. Pick your location

Your car repair shop’s location can make or break your success. Look for high-visibility spots near residential areas, highways, or commercial districts. Proximity to dealerships can also bring in new customers.

But it’s not just about visibility. Make sure your space has the right zoning, sufficient square footage, and proper infrastructure—like garage bays, ventilation, and parking. Consider future expansion too. Is there room to add more lifts, services, or staff down the line?

5. Permits and licenses

No matter where you’re located, you’ll need to secure the proper business license and permits before you can open your doors. Requirements vary by city and state but often include:

• A general business license
• Zoning and occupancy permits
• Environmental or hazardous waste disposal certifications
• Auto repair facility permits

Depending on your services, you may need specific endorsements for emissions testing or safety inspections. And if you plan to sell tires or parts, a resale certificate might be required.

Check with your local municipality or state licensing board to make sure you're covered. Failing to secure the right documentation could shut your auto repair shop down before it gets started.

6. Business bank account

Once your shop is registered, it’s time to set up a dedicated business bank account. Mixing personal and business finances is a rookie mistake that creates accounting headaches and jeopardizes your liability protections.

With a business account, you can secure better interest rates, more credit, and other benefits. For example, with a dedicated business credit card, your shop can establish a credit history which can be useful when trying to raise more money in the future.

Choose a bank that understands small business needs and offers services like business credit cards, payroll integration, and mobile banking. Your business bank account will help you track revenue, manage expenses, and simplify tax season.

7. Business insurance

Insurance isn’t just a checkbox—it’s your safety net. At a minimum, your mechanic shop should carry general liability insurance, which protects you against accidents, injuries, and property damage.

But that’s just the beginning. Depending on your services, employees, and location, you may also need:

• Garage keepers insurance
• Workers’ comp
• Tools and equipment coverage
• Commercial property insurance

As your shop grows, your coverage will need adjusting. Consult with an insurance professional if you are unsure of how much coverage you need.

8. Hire employees

Your team is the engine of your auto repair business. Hiring the right technicians, service advisors, and administrative staff makes all the difference in customer satisfaction and shop efficiency.

Look for candidates with relevant certifications, strong work ethics, and a passion for cars. Whether you’re hiring entry-level techs to handle oil changes or master mechanics for complex diagnostics, make sure your crew reflects your shop’s standards and values.

Lastly, offer competitive pay and growth opportunities to help retain your workforce long-term.

9. Marketing your shop

Now that your auto repair shop is ready, you need a comprehensive marketing strategy to attract and retain new customers. A strong online presence helps shop owners build trust and establish authority. Start with the basics:

• Create a website with services and hours, location, contact information and phone number
• Google Business listing
• Generate online reviews
• Referral programs
• Social media
• Email campaigns
• SEO
• Paid advertising

Invest in local SEO so people searching “car repair near me” can find you easily. Flyers, banners, community sponsorships, and partnerships with local businesses can also help get your name out.

If you need help picking a business name, you can use our free auto repair shop name generator.

Final Thoughts

Starting a mechanic business is no small feat. But with the right mix of technical skills and grit, you can create a thriving, profitable auto repair shop that serves your community and provides a rewarding career path.

Remember, success comes from preparation. Whether you’re launching a mobile mechanic business, taking over an existing facility, or building your auto repair services from scratch, each step you take sets the tone for your shop’s future.

So roll up your sleeves, start laying the foundation, and get ready to turn your dream of owning a mechanic shop into reality.

Should auto repair shops focus on social media marketing?

How many people do you know who spend a substantial amount of time on Facebook? Or hours watching YouTube? How can your business take advantage of how easy it is to get in front of potential customers?

Social media became the leading online activity in 2013 and has grown ever since. According to a Backlinko study, there are 5.24 billion global social media users that average over 2 hours a day on social media platforms. The top three social media platforms are Facebook, YouTube, and WhatsApp.

Chances are that your potential new customers are spending more time online than anywhere else. Is your auto repair shop doing everything it can to reach them?

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Source: https://backlinko.com/social-media-users

Social media channels are key for boosting your shop's reputation and make a big difference when it comes to driving referrals and repeat customers. Engaging your local community will keep you top-of-mind as a reliable, trustworthy place for your guests to get their vehicles repaired.

10 effective social media strategies for auto repair shops

Social media channels are one of the most powerful forms of word-of-mouth advertising; more and more people go on social media to make purchasing decisions as well as socialize with friends and family members.

By having a strong social media presence, it makes it easier for the people you serve to share information about your shop, whether that be promotions, insightful posts, or even fun photos that your auto shop shares. But there are so many ways to engage the people in your service area on social media that it can be tough to know where to start.

To make things easier, here are ten ways that your auto repair shop can use Facebook, Instagram, YouTube, LinkedIn, TikTok, Twitter and other channels to interact and socialize with potential customers and loyal guests.

1. Think local

It’s important to remember that social media channels—especially Facebook—are places where people often go to talk about a shared experience. A lot of times, those experiences are local. Whether it’s how the sports teams in town are doing, where people like to go, or upcoming events, the bulk of many online social media conversations is still driven by what’s happening in our own communities.

Businesses are a big part of that conversation. How often have you seen friends or family members post a question on their feed like “Know any good restaurants in town?” People also post public reviews and recommendations of the places they go and the businesses they use on Facebook, Google, Yelp, and other channels.

While it may not be direct marketing, starting a dialogue about what’s going on in your community may be a good way to start some conversations. Are there any new happenings? Are there charitable or uplifting things that people are doing in your community? You can even talk about the local driving experience, highlighting best roads to take during certain times of the week and any ongoing construction projects that drivers may want to be careful when diving past for the sake of their vehicle.

These are just a few of the things that you can address on your Facebook page to get guests talking and make your shop more approachable.

2. Local charities and events

Looking for ways to play a bigger role in your community? Consider using your social media pages to focus on other businesses, events, and charitable activities in your town. While this may seem to take the focus off of your shop and services, it shows your neighbors and guests that you care about the well-being of your community at large.

For example, Casey’s Automotive in Chantilly, Virginia promotes and partners with the local charity, Ellie’s Hats, an organization that raises funds to support children who have been diagnosed with cancer. Every year, Casey’s and Ellie’s Hats hold an annual Spring Fling car show where the kids get to help hand out prizes for different cars and people get custom-built trophies made out of car parts. By partnering up, Casey’s is not only helping make the world better by living out their values but also engaging the community and gaining potential future referrals.

3. Teach your followers something cool or valuable

Showing guests how to do something is a great way to give them something of value, establish leadership, and build trust. A good auto shop owner can always appreciate guests who take care of their vehicles between visits, so showing guests how to take care of their car may be worth sharing and demonstrate that you truly care about your guests’ vehicles.

In addition, some guests may find things that are simple for technicians and other experienced vehicle owners, such as performing an oil change or rotating tires, to be difficult or more of a hassle than they want to take on, and will instead bring the job to you.

4. Show gratitude and understanding

Guests are the backbone of any auto repair shop. Without them, you wouldn’t be in business. Show your guests that you value them! Sometimes this is better done in person, but if a guest is particularly loyal, or you provided them with some interesting, exciting repair work, you may want to ask them if you can feature them on social media and thank them for coming in.

If someone leaves a 5 star review on Facebook, Google, Yelp or somewhere else, or says something positive about your business, be sure to thank them for taking the time to do so. If the review was not made on a public site, and you got it from a customer by email or text, you should ask them permission to share their review before posting it on social media.

If the review was not made on a public site, and you got it from a customer by email or text, you should ask them permission to share their review before posting it on social media.

Either way, it’s like a trophy; show it off!

Here’s an example of Excluservice in Rockville, Maryland showing off a five-star review on their Facebook page.

5. Respond appropriately to poor reviews

The best way to handle negative reviews (and chargebacks, for that matter) is to prevent them from happening in the first place by providing excellent customer service and communicating clearly with your customers. That said, there is always the chance that something will slip through the cracks or that someone will post something because they’re having a bad day. Not all negative reviews are within your control.

Most channels allow you to respond to guests. Talk to your service advisors and technicians to find the specific circumstances of the complaint being made so you have all the facts before responding.

Then, respond in a timely manner; you don’t want to let a review linger for days before responding.

When you do respond, stay courteous and professional, no matter how rude or out-of-line the customer’s review is. If you are able to encourage them to take the conversation offline by calling you, do so. Sometimes, a little attention will encourage the customer to remove their negative review.

If not, at least the public can see that you paid attention and took every possible step to meet their needs. If the review is entirely fabricated, you may be able to challenge it through an official appeal process on the site; Yelp, for example, allows you to flag a review for removal.

It’s also helpful to be proactive about gathering positive reviews so they drown out the negative ones and lessen their impact on both your potential customers’ shopping experience and your overall average business rating on the review site.

6. Highlight seasonal holidays & events

The holidays are a natural part of the yearly newscycle. They’re also fun for a lot of people, and a time when families and friends come together to celebrate something important. By highlighting holidays and using proper hashtags, your shop can gain more attention, inspire action, and be a part of the community's seasonal activities.

Don't forget to use the proper hashtags for seasons and events in your posts. These can help gain attention, but only if you use hashtags that show up in news feeds!

Some holidays move around on the calendar, but here are some dates and hashtags to use for certain holidays and events that take place over the course of the year:

January

• 1st, #NewYearsDay
• 16th, #GetToKnowYourCustomersDay
• 20th, #MLKDay
• 25th, #ChineseNewYear (1/25 - 2/8)

February

• 4th, #WorldCancerDay
• 14th, #ValentinesDay
• 17th, #KindnessDay (Random Acts of Kindness Day)
• 22nd, #NationalMargaritaDay (Don’t drink and drive!)
• 25th, #MardiGras (Same as above)
• 27th, #NationalRetroDay

March

• 6th, #EmployeeAppreciationDay
• 8th, #InternationalWomensDay
• 17th, #StPatricksDay
• 23rd, #NationalPuppyDay
• 25th, #WaffleDay
• 28th, #EarthHour
• 30th, #NationalDoctorsDay

April

• 1st, #AprilFools
• 15th, #TaxDay
• 16th, #HighFiveDay
• 22nd, #EarthDay

May

• 4th, #MayThe4thBeWithYou (National Star Wars day)
• 5th, #ThankATeacher (National Teacher’s Day)
• 10th, #MothersDay
• 12th, #NursesDay
• 15th, #ChocolateChipDay
• 21st, #AccessibilityAwarenessDay
• 25th, #MemorialDay

June

• 5th, #DonutDay
• 6th, #HigherEducationDay
• 8th, #BestFriendsDay
• 12th, #NationalAutomotiveServiceProfessionalsDay
• 14th, #FlagDay
• 15th, #NativeAmericanCitizenship
• 21st, #FathersDay
• 30th, #SMDay (Social Media Day)

July

• 1st, #TellAJoke (International Joke Day)
• 4th, #IndependenceDay
• 7th, #WorldChocolateDay
• 14th, #BastilleDay
• 17th, #WorldEmojiDay
• 19th, #NationalIceCreamDay
• 26th, #ParentsDay
• 30th, #InternationalDayOfFriendship

August

• 15th, #NationalRelaxationDay
• 19th, #WorldPhotoDay
• 26th, #NationalDogDay

September

• 5th, #InternationalDayOfCharity
• 6th, #ReadABookDay
• 7th, #LaborDay
• 21st, #DayOfPeace
• 29th, #NationalCoffeeDay
• 30th, #InternationalPodcastDay

October

• 4th, #NationalTacoDay
• 16th, #NationalBossDay
• 31st, #Halloween

November

• 3rd, #ElectionDay (2020)
• 11th, #VeteransDay
• 13th, #WKD (World Kindness Day)
• 26th, #Thanksgiving (2020)
• 27th, #BlackFriday (2020)
• 28th, #ShopSmall (Small Business Saturday, 2020)
• 30th, #CyberMonday (2020)

December

• 1st, #GivingTuesday (2020)
• 3rd, #IDPD (International Day of Persons with Disabilities)
• 9th, #ChildrensDay
• 10th, #HumanRightsDay
• 25th, #Christmas
• 31st, #NewYearsEve

7. Social media contests

Everyone loves a raffle, and everyone loves a gift card. Gift card lotteries are a simple way to encourage people to like your posts, share your posts, and provide you with a good review.

We often see auto shops use monthly gift card drawings as a way to continually drum up engagement. It’s also a good way to work in some general education for your customers.

For example, you can make the gift card amount match the exact amount of an oil change to remind customers that they need to get that done to take the best possible care of their vehicle.

Photo contests are another way to get more exposure and traffic to your social media page. You can pick a topic and encourage guests to post or submit their photos on social media and tag your auto shop. Create an award, like a service certificate or gift card, and pick a winner!

8. Like, share, and comment

It’s not enough to just post content and hope people engage with it. Remember to like, share, and comment on your own posts and on other people’s, too, when it’s appropriate.

Sometimes reminding page visitors to like, share, and comment on your own posts is all that’s needed to encourage them to engage.

Here are some example posts that you can try on your own feed:

• "Like us and share your experience on social media and get $5 off!"
• "First 5 people to share and comment get 15% off their next visit."
• “We’re proud to support first responders. Share this post if you are, too.”
• “We’re always trying to improve our guest experience. What can we do to improve our service to you and our community? Tell us in the comments.”

9. Diversify your channels

Between Google My Business, Facebook, YouTube, Instagram, TikTok, and even your shop’s website, there are a lot of places where potential guests may go for information. Posting on all platforms may seem complicated at first, but you can always reshare content. For example, if you post a blog or new service page on your site, be sure to share it on Facebook and Twitter. Did someone leave a good Google review? Post about it on Facebook and thank them! Just upload a YouTube video? Share it on Facebook!

Some social media sites, like Facebook, have built-in scheduling tools that could make it easier to schedule posts without using an outside platform.

Also remember it’s okay to start small; you don’t have to use every single social media channel. If you find a channel does not drive leads by engaging customers or driving search traffic to your website or social media pages, don’t use it.

You are not obligated to use every social media network and may find that it’s only worth using one or two for your business.

10. Have fun!

Probably the most important tip of them all: have fun. Remember, social media is typically a place where people go to engage with socially engaging content. Content that is too serious may make your feed look stale, and make it difficult for potential customers to relate to your brand.

If you can capture your technicians, service advisors, and even yourself having a good time, it breaks the ice and may entice people to do more business at your shop. We’ve seen shops post pictures of team building events as well as pictures that show off their goofy side; the team at Casey’s Automotive has done a good job of posting lighthearted content and photos of their team having a good time, and it has helped them gain more than 2,000 followers.

On May 4th, you can have your team pose for a lightsaber battle. October 16th is National High Five day, so be sure to post some good high-five pictures and emojis on your Facebook page. 🙏 👏

Social media post ideas for auto repair shops

Customer-Centric Content

• “Car of the Week” Feature – Showcase an interesting repair job or classic vehicle that came through the shop.
• Customer Spotlight – Share a short story or testimonial from a happy customer (with permission).
• Before & After Visuals – Post transformation photos of a repair or detailing job.
• Behind-the-Scenes Tours – Give a video or photo tour of your shop and introduce your team.

Educational & Helpful Tips

• Seasonal Maintenance Reminders – Inform customers about what their vehicle needs in winter, summer, etc.
• “Tech Tip Tuesday” – A weekly snippet of car care advice from your technicians.
• Warning Signs 101 – Teach customers how to spot common issues (noises, leaks, dashboard lights).
• Myth-Busting Posts – Tackle popular car care misconceptions.
• Checklist Downloads – Share helpful PDFs or graphics (e.g. "Maintenance reminder checklist").

Interactive & Engaging Posts

• “Guess the Problem” Game – Post a photo or video clip and have followers guess the issue.
• Vote for your favorite car - Create a poll asking followers to pick their favorite car.
• Customer Q&A Sessions – Invite followers to drop questions in comments for your techs to answer.
• Throwback Posts – Share old shop photos or stories from the early days.

Trust & Transparency Builders

• Meet the Team Posts – Personal bios, favorite tools, or “a day in the life” of a tech.
• Explainer Videos – Short clips that walk through common repairs or shop processes.
• Tool Spotlight – Show off unique or advanced tools you use and why they matter.
• Customer Review Highlights – Turn your Google or Yelp reviews into branded quote graphics.

Fun, Culture & Promotions

• Shop Culture Moments – Celebrations, birthdays, pets in the shop, or Friday playlists.
• Contests & Giveaways – Oil change giveaways, “Tag a friend who needs a tune-up” style promos.
• Local Business Shoutouts – Cross-promote other small businesses in your area.
• Milestone Celebrations – Anniversaries, number of vehicles serviced, or team achievements.

Final thoughts

Remember, engaging guests on social media is just one way to improve your auto repair shop. There are other important marketing strategies to utilize such as search engine optimization, paid advertising, email marketing, and more. Lastly, always focus on creating an amazing customer experience to encourage customers to share their experience with others.