Many or all of the products featured here are from our partners who compensate us. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. Performing services on brake systems to coolant flushes. On average, 2/3 of business comes from . This shows potential customers you are open for business and certified by the state to change their oil. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. Marketing programs at lubes should be powerful and . At the end, the information is used to help formulate pricing, marketing and merchandising strategies. As franchises in the industry go, Victory Lane keeps it simple. LOCATION, LOCATION, LOCATION. First, though, you have to get your financial information in order. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. The average price for a multi-point oil change within the quick lube industry is $36.82. Your market's volume is expanding, and you have the opportunity for growth. It can gather data to . We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. The most popular brand-name for freestanding businesses is Jiffy Lube. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. Even if you don't adjust the asset's worth according to the current market, you can still get a good sense of a businesss material value. 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. Just 9% of customers come from a 2-mile radius. (Car Wash Magazine), #10. Jiffy Lube is a leading provider of automotive preventive maintenance. (Digital Dealer), #20. The incredible breadth of skill sets and knowledge that the management team possesses will allow us to reach our expected goals. (Digital Dealer), #19. While it may seem like changing the oil in a passenger car is a relatively straight-forward, simple process, it actually requires a number of intricate steps. Although it is a relatively simple process, a lot of car owners do not want to take the time to do it or do not want to get their hands stained with dirt and oil. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. NerdWallet strives to keep its information accurate and up to date. Below is a detailed analysis of how we want to spend our startup capital. Short overview of your business or personal finances. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . At Easy On Oil, we will differentiate ourselves by not only offering oil change or other automotive maintenance services, but by also providing customers with a stocked lubricant and parts store. In the United States, about 450 million oil changes are performed each year. 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. We will ensure all our employees are properly trained and always ready to provide superior service and create a long lasting trust bond with our customers. questions and concerns and Jason was fantastic in answering my questions as well as We at Easy On Oil have analysed this and we will favorably compete by focusing on convenience and offering a high level of customer service. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. (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.). How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. Often, the site is good, but the former business either lost their lease, got tired of the business, or was operating without a National brand behind them. He will be charged with overseeing the sales and marketing of Easy On Oil. process as a consummate professional. 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. For a full breakdown of the quick lubes we have for sale, as well as a You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. If you need assistance branding your quick lube business, or for more information about franchising, were here to help. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. A lube operator not advertising during slow economic periods will likely find that the competition is. Business plan: A strong business plan helps you make accurate projections for earnings and market growth. You might think that you can't actually distill the value of your entire business to an exact number and, sure, in a way it's a bit of an estimate. That said, doing the math is free, so go ahead and plug your earnings numbers into different formulas and compare. 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. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. Home Business Plans Automotive Sector. Operating expenses and labor are the two largest costs facing the quick lube industry. Buyers obviously won't need all of these documents, but they should still review their own financials. As a result, the need for reliable and convenient quick lube store has grown rapidly in California. There are really four business valuation methods (nested within three approaches, as shown below) that you need to be aware of. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Full range of Auto Lubricants and Repair Parts store. Her writing has also appeared in the New Republic, BBC, Time Inc, The Paris Review Daily, JPMorgan Chase and more. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. We plan to offer our clients personalized service by offering convenience and rapid service. I went in for just an oil change and a lube, and I'll be taking all such . Order Reprints. Do not sell or share my personal information. NerdWallet's ratings are determined by our editorial team. everything transaction moving forward and would recommend him to anyone looking to get Based on currently available information, Valvoline has a total of 1,595 system-wide stores. (Car Wash Magazine), #12. Driving up to a quick lube business for routine maintenance that can be completed quickly saves consumers time and money. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. 1. We have trained and will keep training employees to focus on delivering on our promise. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. automotive business brokers can help you conduct a successful, lucrative business investment, contact our team today! At Easy On Oil, our mission is to provide fast, reliable, and cost effective oil change and lubrication services for vehicle owners in San Diego, California. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. These are some of the most efficient cars to ever be driven. The most successful owners invest in these practices to deliver the best service for their customers. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. The appeal of a quick lube business is easy to see. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. With the Multicare brand extension, Jiffy Lube is focusing on rolling out brake, diagnostic - and eventually tire - services to its customers. Do you want to start a Quick Lube company and need to write a business plan? Please enable cookies on your browser and try again. We will ensure we provide a full range of auto lubricant and repair parts inventory and rapid shipping capability of major parts. One Independent Quick Lube w/RE in East-Central South Dakota! Our partners cannot pay us to guarantee favorable reviews of their products or services. The service requires full cookie support in order to view this website. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Like EBITDA, business owners calculate SDE to determine the true value of their business for a new owner, so your SDE will include expenses like the income you report to the IRS, non-cash expenses whatever revenue your business actually generates. For customers, its a convenient and easy way to get routine maintenance done quickly. Industry Overview 2. You would do the same if you were to open a gas station serving commercial fuel needs, wouldnt you? A well-run business will make transitioning ownership, without losing. (Thats why this number is subtracted from the SDE in valuation calculations.) Knowing your peer companies will also help you assess your market share and growth potential. 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. Then, you can demonstrate to potential buyers what makes your business stand out. 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. Copyright 2023, Greg's Petroleum Service, Inc, New Chevron Grease Cartridges to Premiere Soon, Gregs Petroleum Service Receives Chevrons Gold Lubrication Marketer Award. 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. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. (Car Wash Magazine), #4. Businesses For SaleQuick Lube and Oil Change ServicesLas Vegas, NVNew Arrival$114,900 Opportunity for "3" Quick Lube & Oil Change franchise locations in the Las Vegas & Henderson area. (IBIS World), #3. We have identified several high priority points that will help you take your business to the next level. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. The most popular has been around for a while, hybrid-electric cars. (Statista), #21. A Sample Quick Lube Repair Business Plan Template Table of Content 1. (Valvoline), #24. 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. 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. Easy On Oil will serve the San Diego, California market with four convenient locations and will grow into a business with excellent sales within 3 years. The average revenues generated by a single location in the quick lube industry reached almost $765,000 in 2013. Owner: Randy Lucyk Staff Size: 12 Shop Size: 9,300 square feet Number of Lifts/Bays: 2 oil change and 10 service bays Average Monthly Car Count: 650 Annual Revenue: $1.78 million. In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. 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. Job Roles and Responsibilities 6. Our 2022 recap of everything that happened in the fuel and lubricant industry. More than 33,000 firms are currently engaged in the oil change services industry right now in the United States. into the automotive business. (Business Wire), #15. vendors, insurance agents, and others. If you have a solid business plan, potential investors may feel better about putting their money where your mouth is. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. 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. 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. Just 9% of the sales generated by the quick lube industry come from clients that own vehicle fleets. Snappylubeinc.com Established in 1989. On the sell side, a deep understanding of your industrys trends can help you reach an informed valuation that reflects your business assets as well as the current market. When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change The visitor industry provides employment for more than 160,000 people. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Our Products and Services 4. Keeps supplies ready by inventorying stock; placing orders; verifying receipt. Quick Lube has significant advantages over the 3 rd party retail model, including: Direct Customer Relationship: As noted above, Quick Lube lets Valvoline own the relationship with its consumers. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. 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. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. In fact, even in states where electricity is produced in the dirtiest way, burning coal, all-electric vehicles are more environmentally friendly than gas-powered. One common method used to value small businesses is based on seller's discretionary earnings (SDE). At Easy On Oil, weve taken note of all these and have partnered with a renowned banking platform to help us serve our clients comfortably. (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.). And NOLN's top ranking shows 93 chains in the US with at least 6 locations. Figure 1: VVV's Segment Operating Income Since 2015. Over the past decade, improved technology and extraction techniques enabled industry . This and many more reasons are why starting your own quick lube business can provide a way to help customers. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. In 2011, 31% of consumers preferred a premium product. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. (If you used EBITDA to value your business, youll use an EBITDA multiple.) : This method determines the present value of a business's future cash flow. The quick lube business may thrive on customer turnover, but quality, efficient service is what brings customers back to their favorite quick lube shops again and again. 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. If you ever want to learn . 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