To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. 8 Stalls & Pits! (Business Wire), #13. Do not sell or share my personal information. All financial products, shopping products and services are presented without warranty. Together with our team, these experts will help ensure you get the best Your market's volume is expanding, and you have the opportunity for growth. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. Temple worked as a top sales rep at Chevrolet for over 13 years. possible purchase price and outline opportunities for increasing future revenue. On top of that, he communicated everything in an (If you used EBITDA to value your business, youll use an EBITDA multiple.) Oversees the activities of group technicians, including the recruiting and credentialing processes, Attend standing meetings (board, committee, etc. Then, you can demonstrate to potential buyers what makes your business stand out. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. What often separates one lube shop from another is its creative marketing strategies. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. (Digital Dealer), #19. add technician notes to the photos. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, The visitor industry provides employment for more than 160,000 people. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. Note that convenience, steady referrals from local mechanics, and high quality, rapid service are necessary to capture this segment of the market. Consumers are shifting toward premium products within the quick lube industry. But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. Car owners instead prefer to pay someone else to do it for them. Also our cash flow is impaired and business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.). Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. Our Business location provides us with a vast market and many opportunities. Profit and loss statements for the last three years. The service requires full cookie support in order to view this website. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. The cost of an oil. Later, too, you can use this list to create an overview of your companys value for potential buyers. About Your Results assign a green, yellow, or red status to each part. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. One common method used to value small businesses is based on seller's discretionary earnings (SDE). These services will include full oil changes, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. The service requires full JavaScript support in order to view this website. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. (Car Wash Magazine), #11. We all know this chore requires ones hands to get dirty, and for this reason alone, many car owners are perfectly okay paying a quick lube business to do the job for them. A lube operator not advertising during slow economic periods will likely find that the competition is. But as a seller, you have to put some number on your operation, especially if you want to be compensated for what you've built, taking into account all kinds of equity. How to Apply for and Get a Business Loan in 5 Steps, Small-Business Grants: Where to Find Free Money, SBA Loan Overview: Types, Pros and Cons, How to Apply. In charge of creating marketing and sales strategies, etc. If you plan to open an oil change business, you should investigate any quick lube business within your vicinity and determine how they may impact the viability of your investment. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. When evaluating offers, please review the financial institutions Terms and Conditions. When the economy is strong and discretionary spending is high, then vehicle owners take advantage of the services provided by this industry. I also like doing business with a local firm vs. a national chain. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. All financial products, shopping products and services are presented without warranty. On average, 2/3 of business comes from . Groups exist on the state and federal level to help with seed money. Knowing your peer companies will also help you assess your market share and growth potential. Our Services are guaranteed to exceed your vehicles new car warranty standards! At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. There are two asset categories, and theyre weighted differently when calculating a businesss total value: Tangible assets: When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. No matter what, applications must be filled out and fees paid. I went in for just an oil change and a lube, and I'll be taking all such . Cost of incorporating the Business $750. Full range of Auto Lubricants and Repair Parts store. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Snappylubeinc.com Established in 1989. So, most maintenance on electric cars will be more software driven. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. Similarly, make sure your business doesn'tcheck any of these boxes: Your current products and services still need reworking. Because youre familiar with your own equipment and production, you can make pretty accurate estimates of each of your assets value and depreciation. Our partners cannot pay us to guarantee favorable reviews of their products or services. Verifies vehicle performance by conducting test drives; adjusting controls and systems. She has over a decade of experience in print and online journalism. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. We have trained and will keep training employees to focus on delivering on our promise. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. This influences which products we write about and where and how the product appears on a page. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. Pre-qualified offers are not binding. buying and selling) over the last 15 years. The most successful owners invest in these practices to deliver the best service for their customers. into the automotive business. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. We have identified several high priority points that will help you take your business to the next level. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Why do diesel exhaust fluid (DEF) prices keep rising and falling? If YES, here is a sample Quick Lube business plan template & feasibility report. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. The remaining are small privately-owned establishments. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Disclaimer: NerdWallet strives to keep its information accurate and up to date. The income approach to business valuation determines the amount of income a business can expect to generate in the future. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off auto fluid levels are usually done in 10 minutes or less. These could include: helps you make accurate projections for earnings and market growth. (Buyers might ask about your discretionary cash flow when you offer them your valuation, so be prepared to include and value each major expense or purchase.). Regardless of the option you pursue, get the word out with our help. All these were analysed based on per-unit revenue, per-unit cost, and fixed costs. At Easy On Oil, our major weaknesses will be the time and resources it will take us to establish and publicize our services to the people of San Diego. We will always stress the fact that we only offer reliable services. We will create strong vendor relationships with the most reputable vendors in terms of shipping time of major parts. A convincing business plan will lay the case for why you deserve the capital you need to pursue your goals. We also need enough business cards for three years for our workers and flyers advertising the grand opening to be distributed and posted in the area. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Our diverse management have put plans in place to make sure our regulars feel appreciated by rewarding them for being loyal customers. Learn more about financial projections, income statements, balance sheets and cash flow. His expertise in getting deals done is Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. You will be redirected once the validation is complete. These conservative assumptions make for a more accurate estimate of real risk. Paul Hodowanic. We are the original home the "Oil change in a Snap!" and now have added automotive repair to line up. Most online business valuation calculators use a variation of the income approach. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. Every state has a different process when it comes to business licensing. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. Meredith has worked as a writer and editor for more than a decade. This is why several other methods exist. Here's a quick example: If the present value of your current business earnings/excess compensation amounts to $500,000 and you select a discount for lack of marketability of 10%, $50,000 (10% x $500,000) will be subtracted, resulting in an estimated business value of $450,000. So, established businesses with stable profitability often use this valuation approach. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. When you think about valuing a small business, the most obvious factors in determining value are the companys material resources and holdings. Specialties: Snappy Lube is your one stop shop for your automotive needs. Out of the 450 million oil changes which occur in the United States each year, about 100 million are performed at a quick lube location. Please enable JavaScript on your browser and try again. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. But where the discounted cash flow method accounts for more fluctuations in a business's financial future, the capitalization method assumes that calculations for a single period of time will continue in the future. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. And with hundreds of millions of vehicles on U.S. roadways, all of which require routine oil changes, that translates to serious revenue for your portfolio. 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