How to Start a Diesel Truck Repair Shop

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StrategyDriven Starting Your Business Article |Diesel Truck Repair|How to Start a Diesel Truck Repair ShopThe field of diesel repair is hopping. The United States Bureau of Labor and Statistics estimates the field will grow 9 percent from 2016 to 2026.

This growth only makes sense as businesses continue to grow and need diesel trucks to transport their goods from place to place in our country. Trucks matter so much that writer Stan Mack predicts if the trucking industry stopped for some reason or another, so would the United States economy.

Behind the industry of big rigs and eighteen-wheelers reside the skilled grease monkeys that make them move. Diesel mechanics keep trucks on the road and keep goods moving from place to place.

Keep reading to learn how to start your own diesel truck repair shop.

Truck Repair Shop Or Service Truck?

As you consider the move from diesel technician to diesel truck repair owner, you begin with one decision: truck or shop.

Diesel repair trucks have the mobility that a shop may not, and yet they are still a legitimate truck repair shop business, without the foundation. They’re just a shop on wheels.

A repair truck will serve customers remotely, giving them the luxury of you going to them. Because you do not have a shop, per se, you do not have to invest yet in certain tools, like a hoist.

You also have a limited scope of skills with a mobile shop, but you can offer your services to a fleet versus the average joe looking for an oil change. A service truck works well to service a fleet of trucks, especially if a customer doesn’t care that you’re in their yard.

The mobile shop works well if you want to get your name out there but don’t have the finances for a building yet.
A good mobile shop will have a place for tools, fluids, and parts along with a compressor, generator, welder, floor lights, and potentially a crane. Invest in a good truck because, after all, you’d hate to break down on your way to serve someone else’s vehicle.

If you’re looking at an actual building for your service shop, then consider location first. Look at the potential for a walk-in client with this particular location, which means you want a place with high traffic near a freeway.

What Equipment will the Building Need?

If you opt for a foundation and walls, a building, for your diesel repair shop, you’re going to need specific equipment before you hang your shingle out front. Invest in some diagnostic equipment, a brake lathe, jacks and jack stands, mechanic tools, and vehicle lifts.

Your essential tools will run you around $15,000. Expect to spend approximately $4,000 for each lift and its installation, and know that diagnostics machines and equipment can cost anywhere from $5,000 to $10,000.
This equipment does not come cheap, but you can find high-quality, used equipment if you know where to look. Keep an eye out for brand names, knowing that if you have your own equipment, you will not have to outsource specific tasks.

Keep an eye out for auctions and retiring mechanics. They will have used but quality equipment for much less money.
As you look at the building itself, look for a well-ventilated and well-lit structure. Consider having a shower installed so you and your technicians do not have to go home with the day’s work still on you.

Who Are Your Clients?

As you put together a business plan, ask yourself if you’ll be helping consumers or businesses. Businesses will require more heavy-duty service. Consumers, on the other hand, have a light-duty service.

Businesses often have a less emotional response to the service you give them as the person you’re working for is just an employee of the business and not the truck owner himself. He will be someone working with a budget and paying the bills.

Business work or heavy-duty service tends to generate more revenue, but they also require a specific skill set, so make sure you have the skills necessary to work on heavy-duty equipment.

Business vehicles tend to be more valuable because they do heavy-duty work as opposed to your basic farm diesel truck. These pieces of equipment make money for the business, so the owner values them more. Business diesel equipment also sustains more wear and tear compared to customer’s light-duty equipment.

If you’re going to opt for customers or light-duty service, think farm pickups or off-road diesel vehicles. These typically require light maintenance and do not earn as much revenue.

Will You Have Employees?

When you open your own diesel truck repair shop, you will most likely be the technician and business owner. You need to be forward-thinking, though, and consider if you will want employees in the future or if you want to be a one-man operation.

The majority of businesses are husband-wife teams, and if you’re in this boat, you must ask yourself: can your marriage sustain the stress of a business?

If you plan on having employees, vet the local tech school graduates. Consider offering an internship that may turn into something else.

What Will You Charge?

Labor Rate

Do some research regarding local shops to see what they charge. Then offer a commiserate labor rate or one slightly lower. If you have a slightly lower rate, then a client may preauthorize you to do preventative maintenance like what you can find mentioned in this article.

Parts markup

The common mark up on parts in stock at most diesel truck repair shops is 25% of total revenue. After all, carrying parts costs money, so make sure you have an appropriate mark up for the luxury of having the part in stock. Consider a graduated scale where the markup percentage goes down with more expensive parts.

Insurance

Check your federal, state, and local regulations to see what insurance you will need. The liability for a diesel truck mechanic is large. If the brakes you worked on fail, you are liable.

Do not underinsure yourself. If you have no idea how much insurance you’ll need, consult with seasoned vets that have done the work before you.

Consider the Cost, Then Take the Plunge

Once you’ve evaluated the decisions you need to open your very own truck repair shop, you can take the plunge with some knowledge. You can go to your local banker and then realtor with the full understanding of what you’re getting yourself into.

To read more interesting articles about business strategies, check out our blog.

Fund Your Dream Company! How to Get a Business Loan Without Fail

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StrategyDriven Starting Your Business Article |how to get a business loan|Fund Your Dream Company! How to Get a Business Loan Without FailNo matter what your reason is for starting your own business, you’ve got to figure out how to fund your business. Unless you’ve got a nice nest egg and are ready to part with it, you probably need to learn how to get a business loan.

Many small businesses take out business loans to get the capital they need to start up their business and even pay for day-to-day expenses. Don’t get overwhelmed with the thought of taking a loan out.

Continue reading this article to learn about getting a loan to help you get your business off the ground and flying.

The Simple Truth About How to Get a Business Loan

Getting small business loans or other types of loan for your business doesn’t have to be daunting. After you read these tips, you can go through the process without worrying.

You don’t want to apply for a loan before the lender will approve your request. The more requests you have on your credit, the more of a risk it makes you look like.

Determine Why Your Business Needs a Loan

Lenders aren’t going to take “because I want it” as a good reason for why they should lend you money.

Before you speak to a lender, you need to have a solid reason why you need this loan. The more specific you can get about the reason why you need the loan for your business, the more likely the loan officer will see your vision for your business.

How Much of a Loan Can You Afford?

You shouldn’t decide to take out a loan for as much as possible. Before applying for the loan, you should know how much of a loan you can afford.

If your business cash flow isn’t enough to cover the loan repayment, your business and you could come into some serious problems. You should check to see when loan repayments are expected.

Some companies require that you repay them every month and others even require that you repay them every two weeks. Make sure to check the terms so you know when your payments are going to be due as well.

Create a Solid Business Plan

When you were going through the reason that you needed the money for your business, you likely had to work on your business plan. The more solid your business plan is, the more comfortable a lender will be with loaning you the money.

Depending on what you need the loan for, the loan may have different terms. Write out what you foresee happening with your business. You shouldn’t leave out any important details or numbers that will back up your plans.

What Is the Current Financial Status of Your Business?

If your business is already in operation, it will be easier to get the loan. When your business is already in operation, you have some proof that you know how to do business.

Before applying for your loan make sure that your credit history is as spotless as possible. Lenders are likely to review your personal credit history and that of your business as well.

If you look at your credit report and see there are errors or old debts that haven’t been deleted, you need to request to have them taken care of right away. If you have derogatory items on your credit report it will either cause the lender to deny you or charge you a much higher interest rate.

Besides for your credit report and score, lenders are also going to look at your business cash flow. If you have a strong cash flow then lenders feel confident that you’ll have the means to pay the business loan back according to the agreed-upon terms.

If your credit history and cash flow aren’t enough to get the loan, you should look into what collateral you have to offer. If you have something that will secure the loan, the lender is more likely to trust you with their money. If you don’t pay the money back then they get whatever it is that you put up for collateral.

Look at Your Lender Options

Don’t let loyalty keep you broke. It is important that you look at multiple lenders and see what kind of rates they will offer you.

Even if you’ve done business with a certain bank for years, you might check with online banks and see if they have better rates. Since online bank’s overheads are lower, it is easier for them to offer lower interest rates to their customers.

Prepare All Necessary Paperwork

Putting all of your necessary paperwork together can take quite a while. Make sure you don’t miss any important forms or your loan may be delayed or denied.

If you’re getting a USDA or an SBA loan then you might need to fill out paperwork for the government as well as for the lender in question.

There may be some differences in the loan application process but generally, you’re going to need to include your business plan, financial statements and also your cash flow information.

You may need to provide further documentation if what you provide is deemed to be less than satisfactory.

Learn More About Business & Leadership

Now that you know how to get a business loan, you’re good to go and ready to launch and/or grow your business. Why stop learning now?

Bookmark your favorite parts of our blog so you can come back for more great reads later.

Are You Prepared to Be the Boss and Run Your Business?

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StrategyDriven Starting Your Business Article | Are You Prepared to Be the Boss and Run Your Business? | Entrepreneurship
 
Whether you currently have a stable job or you are still in the process of finding a job, the idea of running a business and being the boss looks very appealing. With the unemployment rate that the economy is experiencing, it means that many companies are still struggling to survive. The idea of starting a small business can be quite a scary idea because the success rate is low. If you feel that you are up for the challenge and you are ready to take risks, then you must make the necessary preparations. To increase your chances of being successful here are some tips on how to prepare you for business.

Define your goals

It is easy to say that you want to have a business, but you need to be very specific with your goals and wishes. Ask yourself what kind of business would you like to have? Are you planning to sell services or goods? How long are you giving your self before you start hitting your business goals? Your intentions of running a business should be genuine, or else there is a big possibility that it will fail in the long run because you lack passion and commitment.

What are the costs?

It does not matter whether you want to start small or big, but the bottom line is that you need money to make your investment sustainable. Do you need to figure out how much capital you need to start the business? Do you have enough savings to cover all the costs? If not, are you willing to apply for several loans to increase your revolving funds? You need to have a clear vision of whether you can continue supporting your business in a few months or you will end up closing down because things are not going according to your plan.

You need experience

Before deciding to open up a business, you need to have some first-hand experience of handling people with different personalities. It would help if you also learn the ropes in the industry that you are about to be part of. It is a good idea to get several months or years of experience in companies in the same industry, so you will have the confidence to manage your business.

Find ways to save money

Most start-ups struggle with finances. That is why you need to be thrifty and wise when it comes to your expenditure so that you can survive the competition. Think about your monthly overheads like rental, utilities and staffing. These will be your top three expenses. Try to look for a place with lower rent or do it from your home. You can work on your workforce by hiring a sufficient number of people only.

Lastly, you need to look for a trusted Utility Bidder before moving to a new office space or setting up a physical store. It would help if you found an electricity and gas provider that is affordable and offers excellent service.

Advice For Launching Your First Business

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StrategyDriven Starting Your Business Article |Launching a Business|Advice For Launching Your First BusinessPlanning on launching your first business? This is an exciting time, and you will be keen to get started, but running a company is no easy task, and there are a lot of areas that need careful consideration. You hear of many businesses going belly up before they’ve even had a chance to succeed, so it is understandable if you have some anxiety about launching your company. Read on for a few tips which should help you to avoid common mistakes, hit the ground running, and build a platform for you to go on and find success with your first business venture.

Carry Out Thorough Market Research

Before you get the ball rolling, you need to make sure that it is a viable business option. It might be an idea that you are interested in, but it needs to be something that is in-demand which you can find out with market research. Look at the current state of the market, who your competitors are, who your target customer is, if there are any gaps in the market, and if there is the potential for success.

Create A Plan & Get Sufficient Funding

You can then use your market research to create a detailed business plan which will detail your understanding of the market, your USP, a business model, and financial projections. The business plan can act as a guideline for your company, but it can also be used to secure funding. You need to make sure that you acquire sufficient funding so that you can get the operation running up to a high standard. There are many options for acquiring funds, including venture capitalists, loans, angel investors, and crowdfunding.

Build A Brand

Your brand is how you differentiate yourself from the competition, and it should always be eye-catching, stylish, and relevant to your industry and target customer. It should also be a reflection of your brand personality and values. This will include a company name, logo, and slogan but also your approach to business. You will then need to register the business and secure a domain name for the website.

Online Presence

Leading on from this, you then need to create a strong online presence as this is vital in today’s day and age. This will include an attractive, functional, and valuable company website and being active across social media channels.

Legal Support

It can be daunting when you start a company for the first time as you will want to make sure that everything is legal and above board. It is a good idea to find a lawyer that specializes in business law, such as charlestonlaw.net. In addition to helping you to get up and running from a legal standpoint, they will also be able to help with any legal difficulties that you encounter at any time.

Starting your first company is an exhilarating experience, and you are sure to enjoy many aspects of the process, but it can also be stressful, and many new entrepreneurs make the same mistakes. The above tips should help you to avoid common pitfalls and provide you with a solid foundation to go on and find success.

3 Ways to Secure the Property You Want

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StrategyDriven Starting Your Business Article |Buying Property|3 Ways to Secure the Property You WantRunning a business can be incredibly rewarding, and your success can bring a number of positives to your life, not just extra income. Success often comes with challenges, and as your business grows and succeeds you will soon find yourself running out of space in wherever your business began.

If you started in your garden shed or garage, or are working from a small industrial unit, with your business’s success will come a demand for expansion. Operating from premises that are more appropriate to your company’s needs will also increase productivity and efficiency, giving you a firm base to further grow your business.

Getting the property that you want and that your successful company deserves can seem difficult at first, but there are a few avenues every executive should explore when they are looking for a property to satisfy the increasing demands of their successful business. Here are three ways to secure the property you want.

Speak to Your Current Landlord or Developer

If you are already operating from a commercial property, it is always worth talking with your existing landlord or commercial letting agency to see if they have any other, more suitable properties in their portfolio.

They may also be interested in expanding your existing site, working with you to develop their property with you as a long-term tenant.

Arrange Financing to Help the Business Expand

Property is a fantastic asset for a business to have, and investing in property is often seen as a safe place to invest large sums and receive a long-term return. This makes a new property a great place to invest the financial rewards from your success.

If business is booming, arranging finance for a commercial property will be simple and quick to do, especially with sites like https://alternativebridging.co.uk/ that help broker the right financial package to help your business buy an existing property or even build its own tailor-made facility.

Work with Local Authorities and Development Partnerships

A number of councils across the country, and business development corporations, are building commercial business parks, some with large units available if you need manufacturing space.

Business parks like these often come with a number of amenities that only add to your business’s efficiency and productivity. They are often situated close to major road networks and motorways for convenience, often so close that you can see the units offered as you drive by on the motorway.

You may be surprised at the government initiatives that are available in your area to help businesses grow and create more jobs. They will often have schemes available for local businesses to expand, especially if property and an increase in employees is a part of the expansion. Local governments can help small businesses guarantee finance or receive tax breaks for increasing their number of employees.

Taking the next step and expanding your business with a new property is easier than you think, and can increase your productivity and your profits. Why not build on your business’s success with a new building?