How will you separate yourself from the competition in a crowded market? 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. He will be charged with overseeing the sales and marketing of Easy On Oil. Depending on the degree of corporate transparency, you can also see what comparable businesses are selling for. (Business Wire), #15. Pre-qualified offers are not binding. 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. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. The typical quick lube service location will perform about 1,200 service and maintenance tasks in the average month. Protect your EATS system with Delo 600 ADF. On average, 2/3 of business comes from . And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. The average vehicle owner will change their oil about every 5,000 miles. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. Internet companies or buyers interested in the tech sector can use online directories like Crunchbase and platforms like AngelList, which provide information about startups, funding, investors, and more. December 16, 2021. You'll need to understand some key definitions first: If youre familiar with EBITDA, youre probably already familiar with SDE, or sellers discretionary earnings, too, even if you've never heard the term. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. Along with hybrids, all-electric cars are taking to the streets across the world. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. 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. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. With ever-increasing vehicle ownership in the United States, consumer demand for oil changes has a low potential for fluctuation due to the fact that drivers lack the necessary training, materials, and resources to successfully perform their own oil changes. If YES, here is a sample Quick Lube business plan template & feasibility report. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. However, this does not influence our evaluations. So, most hybrid-electric cars do not ever run on electricity alone. 1. 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. People will continue to drive regardless of the general economic market. Every state has a different process when it comes to business licensing. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. process as a consummate professional. But even if you arent planning to sell or you already have an offer, knowing how to value a business and determining the value of your own can help inform your companys road map, plus future exit strategies. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. www.ratchetandwrench.com is using a security service for protection against online attacks. (Digital Dealer), #17. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. (Car Wash Magazine), #12. When evaluating offers, please review the financial institutions Terms and Conditions. NerdWallet strives to keep its information accurate and up to date. We have tapped into real estate where our competitors cannot go. We hope to make available the following payment options for our clients; Our plan at Easy On Oil is to spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. So how do we make money? A valuation represents your companys total worth. These could include: You'll also need to know your liabilities. Corrects vehicle deficiencies by removing, repairing, adjusting, overhauling, assembling, disassembling, and replacing major assemblies, sub-assemblies, components, parts, or systems, such as air conditioning, fuel, emission, brake, steering, hydraulics; completes machine shop operations; making adjustments and alignments including bearing loads, gear tooth contact, valve mechanisms, governors, oil systems, control linkages, clutches, and traction units. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. What often separates one lube shop from another is its creative marketing strategies. We will also provide additional services such as on-the-spot minor repairs for a vehicles air conditioning, brakes, or hoses. Jiffy Lube is a leading provider of automotive preventive maintenance. More often, small businesses should use SDE for their business valuations, since small-business owners usually pull a large percentage of their businesss revenue for their salary and living expenses. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. (If you used EBITDA to value your business, youll use an EBITDA multiple.) This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. No matter what, applications must be filled out and fees paid. You have a loyal customer base. The health of the quick lube industry is tied to the health of the general economy. Our partners cannot pay us to guarantee favorable reviews of their products or services. (Thats why this number is subtracted from the SDE in valuation calculations.) We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. (Business Wire), #16. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. Meredith has worked as a writer and editor for more than a decade. We believe that by establishing a strong customer relationships based on trust and integrity, we can benefit from a strong regular customer base and good referrals. text the finished report to the customer's mobile device. These 10 chains account for nearly 60% of the more than 32,000 US locations. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. #1. A Sample Quick Lube Repair Business Plan Template Table of Content 1. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. If buying and selling businesses is a new frontier for you, you can consult any number of online resources to help you determine the value of a business. Before even thinking about how to value a small business for sale, both sellers and buyers should organize their financial records thats crucial for accurate calculations. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Read more. With Easy On Oil as a technologically savvy business with computerized monitoring of all automotive lubricant and repair parts inventory, we plan to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. ), Monitor quality and appropriateness of services and care, Provide guidance and leadership for performance guidelines, Manage staffs relations and/or representation, Manages external research and coordinate all the internal sources of information to retain the organizations best customers and attract new ones, Models demographic information as it relates to those who need our services, In charge of promoting the companys image. This offers incredible value to customers who need their cars fixed right away. Owners who pay attention to their customers needs and focus on the customer experience are often the most successful. A well-run business will make transitioning ownership, without losing profits in the process, significantly easier. If so, read on about what it takes to become one. I will only use Jason for The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. Easy On Oil is a well-positioned quick lube shop that will serve the needs of the people of San Diego. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. As a first time buyer, I had a lot of extra When it comes to all-electric cars, consumers either have an inexpensive car with very low range or a very expensive car with comparable range to an ICE car. Most locations achieve this figure with just 2-5 service bays available to them. Tourism alone in San Diego is a major industry owing to the citys climate, beaches, and tourist attractions such as Balboa Park, Belmont amusement park, San Diego Zoo, San Diego Zoo Safari Park, and Sea World San Diego. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . While you may not be able to meet their commercial fuel requirements, you certainly can help them with just about anything else. As revenues have increased, however, net profits have decreased by 2.3%. I help you make the necessary changes that will remove you from the daily grind and fire-fighting so you can create new value and make additional impact in other areas. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Additionally, franchising a business comes with an entirely different set of understandings and obligations. A well-run business will make transitioning ownership, without losing. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. The two PEGs that own Express Oil LLC now have more than 700 stores. 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. (Car Wash Magazine), #5. So, sellers should find out as much as they can about companies that are similar in size, business model, and revenue, if that information is available. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. The average age of a vehicle owned in the United States is 11.4 years. Over my over fifty year career, I have had the privilege of working with many other Finally, any current debts or future payments, called liabilities, are subtracted from the net income. In comparison, leasing costs are just 9% of the overall expenses for the average location. These systems gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Quick Lube operating income is up to $162 million TTM . www.ratchetandwrench.com is using a security service for protection against online attacks. SWOT Analysis 7. everything transaction moving forward and would recommend him to anyone looking to get Our Products and Services 4. Youve come to the right place. First, though, you have to get your financial information in order. As franchises in the industry go, Victory Lane keeps it simple. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. The most successful owners invest in these practices to deliver the best service for their customers. Keeps equipment available for use by completing preventive maintenance schedules; installing component and part upgrades; controlling corrosion; completing winterization procedures. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. The quick lube industry focuses on providing oil changing services for automobiles. About Your Results (NOLN Fast Lube Operators Survey), #23. Snappylubeinc.com Established in 1989. comprehensive listing of auto repairs for sale near you, give us a call at 1-800-874-5793 for details. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. 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. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. They are responsible for the direct employment of almost 90,000 people. All financial products, shopping products and services are presented without warranty. For that reason, projections of growth for the industry are as low as 0.7% within the forecast period in some markets. 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. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. Note that each of the three co-owners will invest an equal amount. (Car Wash Magazine), #10. We believe earnestly that this will also make our customers more comfortable working with us when they see the same technicians each time they come in for changes. The service requires full JavaScript support in order to view this website. , Victory Lane how to value a quick lube business it simple and preventative maintenance the two PEGs that own Express Oil LLC have! Comes to business licensing against online attacks to create a highly fuel efficient car, especially when driving locally of! And identifying worn and damaged parts a reasonable price pittsburgh, PA: Sale! 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