We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. 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. 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Cost for basic insurance policy covers, permits and business license $100,000, The cost of acquiring a suitable Office facility 6 months (Re Construction of the facility inclusive) $120,000, The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) $10,000, The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) $12, 000, The Cost of Launching our official Website $4,000, Our budget for paying at least five employees for 6 months plus utility bills $70,000, Additional Expenditure (Business cards, Signage, repair equipment, Adverts and Promotions et al) $234,000. NerdWallet strives to keep its information accurate and up to date. Another competitive advantage we plan to leverage at Easy On Oil will be our unprecedented customer approach to service. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. SWOT Analysis 7. New Constructs, LLC. Implement an ongoing training program. The average vehicle owner will change their oil about every 5,000 miles. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. effective manner and I never once felt like I was in the dark. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. vendors, insurance agents, and others. assign a green, yellow, or red status to each part. This business is your one-stop shop for fast and friendly oil change & maintenance services. (Digital Dealer), #19. The two PEGs that own Express Oil LLC now have more than 700 stores. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. Check out the ACS reviews left by our clientele. Note that each of the three co-owners will invest an equal amount. We also have plans to send them coupons for discounted work or give them a free oil change from time to time. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. (Business Wire), #13. 72% of operators within the quick lube industry operate one location only. www.ratchetandwrench.com is using a security service for protection against online attacks. 48% of operators within the quick lube industry run a business which combines car washing services with oil changing services. According to National Oil and Lube News, there are 10 national chains with at least 1,000 shops, including brands such as Jiffy Lube, Valvoline Instant Oil, and Pennzoil 10-Minute Oil Change. 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. 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. At Easy On Oil, we will generate revenue by actively providing oil change services in each of our facilities. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . Instead, the two halves work hand-in-hand to create a highly fuel efficient car, especially when driving locally. (Car Wash Magazine), #7. Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. 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. Your ultimate valuation should be the result of consistent calculations, so dont mix and match formulas. Also, our wide range of auto lubricants and repair parts inventory that is (nearly) never out of stock will further cement our place as a reckoning force in the industry. Quick lube stations provide services ranging from basic oil changes to transmission flushes and windshield wiper replacements. add technician notes to the photos. Generating Funding/Start up Capital for Easy On Oil. With an estimated population of 1,425,976 as of July 1, 2018, San Diego is the eighth-largest city in the united states and second-largest in California. 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. 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. I also like doing business with a local firm vs. a national chain. Too often, making an appointment for an oil change or other routine maintenance takes too long. Most online business valuation calculators use a variation of the income approach. Figure 1: VVV's Segment Operating Income Since 2015. (Car Wash Magazine), #4. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. Your market's volume is expanding, and you have the opportunity for growth. Among these, only a few are major national chains. 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. Conducting a valuation is an excellent opportunity to assess the financial health and potential of your business, or of a business youre hoping to buy. This is another opportunity to seek the counsel of a mentor or a professional advisor, who can provide insight into your businesss assets from a more objective perspective. 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. As cars become more complex, even something as simple as changing the oil could require a manual. Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. EasyOn Oil will actively provide oil change services in each of our facilities for vehicles. The cost of an oil. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. As a first time buyer, I had a lot of extra In hybrid-electric cars, the electric systems are used to even out the power needs in the vehicle. Full range of Auto Lubricants and Repair Parts store. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. Victory Lane includes basic maintenance checks such as flushes and fills, antifreeze and wiper fluids. As 2018 kicked off, Jiffy Lube launched a new brand extension. This means intellectual property, your production line, your delivery truck if its a part of your business, you'll either need to account for it as an asset or a liability. Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. For the average business, they account for 60.7% of total expenses. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 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. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Additionally, franchising a business comes with an entirely different set of understandings and obligations. Regardless of the option you pursue, get the word out with our help. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. Do you know anyone who might want to invest in your business in exchange for a share of the returns? Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. When the economy is weak, vehicle owners tend to complete these services on their own, to the best of their ability. (Car Wash Magazine), #6. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. The service requires full JavaScript support in order to view this website. Whether you plan on bankrolling your business yourself or finding backing from a lender, no business plan can see the light of day without some cold, hard cash backing it up. 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. Mike has been instrumental in helping me successfully complete 4 transactions (both We will offer these distinct but complimentary services coupled with unprecedented customer service, something that the industry is not known for having. Keep up to date on our new listings and business opportunities. Direct marketing at a lube allows an operator to specifically direct their promotional energies to the core consumer with the goal of completing a sale. (NOLN Fast Lube Operators Survey), #23. Check out our Website for Services and Coupons! Ensures that the shop is secured at all time, Patrols around the building on a 24 hours basis, Handles any other duty as assigned by the manager, Providing automotive oil change and lubrication services, Providing automotive emissions testing services, Providing automotive rustproofing and undercoating services, Providing automotive safety inspection services, Providing automotive tire repair services, Providing emissions testing with repair services, Spray-on bed liner installation for trucks. (Digital Dealer), #17. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. Youve come to the right place. Great reputation and a long history of loyal employee and customer satisfaction. One Independent Quick Lube w/RE in El Dorado, KS. 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. business, you get the benefit of our extensive, curated network of industry professionals, including lenders, Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business. Some of them also have electronic work order systems available amongst their various service centres. About the author: Meredith has worked as a writer and editor for more than a decade. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. Do you want to start a Quick Lube company and need to write a business plan? We will attract and maintain a loyal customer base through our customer-oriented focus on business. The Oil Change Services in the US industry consists of Conventional oil changes, semi-synthetic oil changes, full synthetic oil changes, automotive oil changes, car washing and cleaning services, other maintenance services and high-mileage oil changes. A well-run business will make transitioning ownership, without losing. www.ratchetandwrench.com is using a security service for protection against online attacks. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Sources: New Constructs, LLC and company filings. LOCATION, LOCATION, LOCATION. We believe everyone should be able to make financial decisions with confidence. (Thats why this number is subtracted from the SDE in valuation calculations.) So, most hybrid-electric cars do not ever run on electricity alone. There are many services that go beyond the simple passenger and commercial fuel needs of the public and businesses. Even though quick lube locations are seeing a reduction in the number of cars being serviced each day, the number of oil changes being performed is rising. Unlike auto mechanics, businesses in this industry do not offer mechanical and electrical repair and maintenance. Snappylubeinc.com Established in 1989. About Your Results 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. This influences which products we write about and where and how the product appears on a page. 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. Our Services are guaranteed to exceed your vehicles new car warranty standards! Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. Although this may create some upfront reduction in revenue, we believe it will end up paying out in the long run as we start to build up a client base that will only come to us for repairs and refuse to go anywhere else. NerdWallet's ratings are determined by our editorial team. Pre-qualified offers are not binding. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. 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. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, How to Value a Small Business If Youre Looking to Sell or Buy. 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. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. Today, the company operates as a wholly-owned subsidiary of Royal Dutch Shell within the parent company Pennzoil. On top of that, he communicated everything in an 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. Profit and loss statements for the last three years. To calculate your businesss SDE: Start with your pretax, pre-interest earnings. At some point, every vehicle requires ongoing maintenance to keep it functioning properly. All financial products, shopping products and services are presented without warranty. Operating expenses and labor are the two largest costs facing the quick lube industry. (Digital Dealer), #20. Consumers are shifting toward premium products within the quick lube industry. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. All financial products, shopping products and services are presented without warranty. Another 16% of business owners have two locations where they provide services. Over my over fifty year career, I have had the privilege of working with many other (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.). These 10 chains account for nearly 60% of the more than 32,000 US locations. Large businesses generally use EBITDA calculations to value their businesses, and small businesses typically use SDE, since small-business owners often expense personal benefits. Below is well detailed outline of the services we will offer at Easy On Oil facilities in exchange for cash and referrals; Note that our sales forecast at Easy On Oil is based on the averages of the first-year figures for total sales by units, and for operating expenses. #1. Together with our team, these experts will help ensure you get the best Our Business location provides us with a vast market and many opportunities. Here is a list of our partners and here's how we make money. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. This allows households to save a little money on the aftermarket needs of their vehicle. She has over a decade of experience in print and online journalism. To attract additional financing, the owners may consider taking Easy On Oil public several years down the road. Read more. Here is a list of our partners. We have considered this weakness and have established a solid advertising and marketing plan to push us into the face of our target market. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. Easy On Oil is a San Diego registered LLC quick lube business that will provide high quality oil changes at a reasonable price. Sample 1 Sample 2 Sample 3 Based on 6 documents Car owners instead prefer to pay someone else to do it for them. Going with a credit union or other financing structure might work if you cannot find a commercial lender. According to industry data collected over the past five years, the quick lube services industry has an annual growth rate of 2.4% and a combined annual revenue of $5.5 billion. If you ever want to learn . If YES, here is a sample Quick Lube business plan template & feasibility report. (Valvoline), #24. You have a loyal customer base. In 2011, 31% of consumers preferred a premium product. We plan to offer our clients personalized service by offering convenience and rapid service. Once youve determined to open a quick lube business, the first thing to do is to put together a business plan. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Why do diesel exhaust fluid (DEF) prices keep rising and falling? (Car Wash Magazine), #5. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. Franchised Oil Change & Repair Shop in Solano County. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. Entrepreneurs looking to buy an existing business should also be familiar with valuations, and feel comfortable estimating value independently of the business owner or brokers asking price. With a national footprint of more than 2,000 franchisee owned service centers across the country, Jiffy Lube offers a range of services from oil changes and tire rotations, to everything in between. For a full breakdown of the quick lubes we have for sale, as well as a People are graciously buying cars and comfort. At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. I will only use Jason for The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. 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. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. For that reason, projections of growth for the industry are as low as 0.7% within the forecast period in some markets. 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. 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. Succeeding in business is never easy theres a reason why most small businesses never make it past three years but if you do it right, success wont be far away. We understand that starting a business like ours can be very expensive due to the high cost of equipment. Mechanics, businesses in this industry do not offer mechanical and electrical Repair and maintenance through...: this 10-unit quick lube business that has outstanding locations the parent company Pennzoil two locations where they services. A well-run business will make transitioning ownership, without losing business that will allow us our. 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