Is fixing cars one of your interests? If your answer was an immediate ‘yes’ then now could be the right time for you to turn that passion into understanding how to start a mobile auto repair business.
Since most individuals own a car today, setting up a mobile auto repair business will satisfy a consumer need that has expected longevity. However, with a large number of mechanics in Australia, it is vital that you start up your business on the right foot.
Here are key first steps you need to know before you start your very own business.
What is a Mobile Auto Repair Business?
A mobile auto repair business is a business that meets clients automotive needs wherever they may be. Essentially, you will be operating as a traveling mechanic that is capable of repairing cars and motorcycles.
Getting Started: The Pre-Planning Steps
Research
Doing your research early on will ensure that everything is in order, when you launch your business. When starting a mobile auto repair business you are going to need equipment and tools, so understanding what you will need and how much it will cost is a good place to start. You should also do your research to find the best deals to optimise the profitability of your business.
Another important factor to research is the cost of your services. In determining your price, you must look into your competitor’s charging rates. Ideally, the cheaper your services the more inclined customers will be to contact you. However, you must be careful not to make your services too cheap for two reasons. Firstly, you need to make sure that you are making a profit. Secondly, you do not want customers to assume that your prices are low because the quality of your services are compromised.
Moreover, try to research what niche services you can utilise to make your mobile auto repair business more successful. This will appeal to consumers and will enable you to choose your cost price since these services will be unique to your business.
Location
It is important to choose an appropriate location where you can operate your business. As a Mobile Business, you should consider the range of locations you can operate from and maybe place a limit on where you are willing to travel.
Develop a Mobile Auto Repair Business Plan
Excellent planning will often lead to success. Using your research, you should develop a formal business plan to guide your business. This might include your:
- Business objectives and goals
- Business structure
- Target market
- Competition
- Marketing strategy
You can always seek assistance from a professional accountant or business lawyer to assist you with this, if you aren’t confident in developing a business plan yourself. It’s important to revisit and review your business plan regularly.
Determine your Business Name
Now you need to decide on a business name. Once you decide on your name, you can check the availability of the business name you have chosen.
If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia.
Determining your Business Structure
You will need to decide on a business structure to establish your business plan. Consider whether you will operate as one of the following.
- A sole trader is someone who owns and operates a business under their personal name.
- A partnership is when two or more people come together to form a business.
- A company is when you register your business as a separate entity from your personal affairs.
You should contemplate which structure will work best for your business goals. It is important to know what the legal ramifications are of each structure and how they can affect how you operate.
Get a free legal document when you sign up to Lawpath
Sign up for one of our legal plans or get started for free today.
Registering your Business
You need to register for a few things in order to make your business official. For instance:
- A business name
- An Australian Business Number (ABN) to help the Australian Tax Office (ATO) and customers identify your business.
- It would be good practice to also register your business as a company (ACN) so you can benefit from limited liability.
- Register your Tax requirements.
- Ensure that all relevant licences or permits are valid.
Source Insurance
Insurance is the most important step when setting up your business. It is imperative that you protect yourself and your business from any legal action. Firstly, you will need a type of public liability insurance, this will be beneficial for you and your business when customers or staff experience injuries on site or otherwise.
Public liability insurance from insurance companies such as BizCover can help you protect your property and your employees from damage or injury.
Additionally, you will want to ensure you have worker’s compensation set up for these instances. Finally, you will need a form of coverage for all your equipment to protect against loss, damage or theft.
Hire Employees
You will want to consider hiring additional staff to help ensure that your business runs smoothly, especially as it expands. You will need to decide how many employees you are looking to hire and what type of employment they will receive. Will they be full time, part time or casual workers?
You will then need the appropriate employment agreements drawn up and signed. There are different types of employees that you can hire, learn more about how they may affect your business in the Webinar below.
Marketing Your Mobile Auto Repair Business
Now all you need to have a successful business is working on appropriate jobs. When considering how to advertise your mobile auto repair business to help you attract individuals or companies in need of auto repait work you may want to implement a strategic marketing plan to cover all your bases. This will allow you to gain insight into your target market.
It will also be beneficial in helping you understand what is the most effective marketing method to reach your target market. Some marketing methods you may choose to use include starting a social media page or putting an advertisement in your local newspaper. Another simple and effective approach of reaching new customers is through word of mouth.
Having an online presence is important even for construction companies. Using websites like Shopify or GoDaddy can help you create a well-established business so that your customers can easily find you. Additionally, you should set up and maintain a website which means you need to consider any website terms and conditions to ensure that your customers are safe.
Considering the Law
Similar to a standard Auto Repair Business, the legal considerations are largely the same, the only difference is that a mobile business can operate from anywhere depending on where their clients are.
Qualifications and Licences
Firstly it is important that you visit your local licensing department to apply for the necessary mechanic licenses. The type of license required will vary based on the service you will provide. If you will be offering a range of services then you may need several licenses. The Department will provide you with the necessary information to ensure that you are qualified.
In NSW, In order to operate your own vehicle repair business, you must hold a motor vehicle repairer licence. You can apply for either a 1, 3 or 5 year licence and the application can be completed online.
Australian Consumer Law
In NSW as a motor vehicle repairer, you will to ensure your business complies with the Australian Consumer Law (ACL).
The ACL covers most products and services bought in Australia and relates to consumer guarantees. Moreover, work should be done with due care and skill, fit for purpose, and completed in a reasonable timeframe.
If your business fails to meet any of these guarantees, your customers can request under the ACL to:
- repair, replacement or refund; or
- cancel a service; or
- reimbursement for damages and loss.
If you would like to know more about the legal requirements in your state you can go to any of the following websites.
- ACT Office of Regulatory Services
- WA Consumer Protection Licensing Branch, Department of Commerce
- NSW Office of Fair Trading
- TAS Consumer Affairs and Fair Trading
- QLD Office of Fair Trading
- SA Consumer and Business Services
- NT Consumer Affairs
Motor Dealers and Repairers Act
The Motor Dealers and Repairers Act outline the rules you need to follow as a vehicle repairer in NSW. This is to ensure that you are not misleading your customers and the appropriate standards of conduct are followed.
Motor Dealers and Repairers Regulation
The Motor Dealers and Repairers Regulation elaborates upon the Legislation outlined above. This further details information in regard to licensing, record keeping and reporting requirements, fees, and business conduct.
Motor Vehicle Insurance and Repair Industry Code of Conduct
The code of conduct aims to promote transparent, informed and cooperative relationships between smash repairers and insurance companies. As a motor vehicle repairer you must comply with the code.
Legal Documents you will need
To get up and running, you should consider these legal documents so that you can protect your business. Some documents you should consider include:
- A Services Agreement can outline the service you provide so that your customer can know what to expect.
- A Employment Agreement can outline your employee’s responsibilities and their obligations to your business.
- A Refund Policy allows for you to inform your customers of your refund policy.
- A Tax Invoice allows you to create a formal request for payment and ensure your records are up to date.
How Lawpath Can Help
At Lawpath, we can help guide you through starting your own automotive repair business. One of our Experienced Lawyers can provide you with all the legal information and requirements necessary for your business to succeed.
Get a fixed-fee quote from Australia's largest lawyer marketplace.
