What is better: to buy a ready-made service station or to open a car service centre from scratch?

What is better: to buy a ready-made service station or to open a car service centre from scratch?
24.11.2016
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According to statistics from Russian business publications, service stations, car washes, and tyre fitting workshops are among the TOP-10 most promising types of small business. At the same time, over the past 5 years, despite the growth in the number of competitors, as well as the economic downturn, this niche has not practically changed its position. The question is whether it is necessary to buy and develop a ready-made business or better to invest money, effort and time in the construction of a brand new car service station? Let's compare.

Opening a new service station

Let's start immediately with the difficulties that arise in the early days of entrepreneurship in the field of car maintenance. At a minimum, you'll encounter:

  • creating and presenting a business plan to investors if you will be raising outside money;
  • paper red tape in the registration of documents for the purchase or lease of land, previously spending a lot of time to find it;
  • the intrigues of the bureaucratic system in obtaining permission to run their own business;
  • searching for clever engineers and builders of the building of the car service centre;
  • purchase of expensive equipment for the service station;
  • hiring smart staff;
  • developing a large advertising campaign to attract customers, etc.

Of course, you'll have to sweat a lot, but don't be afraid of obstacles. Go ahead and turn your ideas into reality!

Boldly!

That how much it costs to open a new service station, it is impossible to say unequivocally. Everything will depend on the type and number of services provided, the design of the building and its location, the level of qualification of specialists who need to pay salaries, and other relevant factors. If you open a full-service car service station, you will need about 2,500,000 roubles for its launch and the first few months of operation.

But there are some positive aspects to opening a car service centre from scratch.

  • Firstly, the compliance of the actual desired by all points of the business plan (without taking into account force majeure cases).
  • Secondly, the exclusivity of the created project.
  • Thirdly, increased self-esteem and pride in the ability to independently commit serious actions.

So, if you are a convinced optimist or adventurous, go ahead and get started!

Buying a ready-made service station

This section of the article will appeal to realists, pragmatists and those who are opposed to taking rash risks, as buying an existing service station is more profitable for a number of reasons.

  1. Buying a ready-made business saves time for finding land and funds for the future object, and also saves nerves, getting rid of paperwork and bureaucratic intrigues.
  2. Often ready-made business is sold together with equipment and special tools, which will be enough for the first time of work. Also you do not have to worry about finding a team of skilled craftsmen who «will pass to you by inheritance» from the previous owner. Of course, minimal staff changes are inevitable.
  3. Successfully operating car service does not need large-scale advertising, has a good customer base and a worthy place among competitors.  True, if you buy a service station in times of crisis of its existence, over the promotion and attracting customers will have to work hard.

Of course, there are some pitfalls in buying a working auto service centre. But with a competent legal and economic approach to this process, the main disadvantage, perhaps, will be the exterior and interior of the building of the service station, which over time can be changed to suit yourself or even get used to what is there.

And the main disadvantage is the exterior and interior of the building of the service station, which over time can be changed to suit yourself or even get used to what is there.

The cost of buying a ready-made car maintenance business will depend on the region, infrastructure and human traffic, the size of the active customer base, production capacity and the number of hired staff. And we can talk here about both units and tens of millions of roubles.

And we can talk about both units and tens of millions of roubles.

As you can see, it is much more practical to buy a well-established business than to start a personal business from scratch. But on the other hand, you should always strive for new discoveries and achievements. There is one thing in common in this matter – service stations are in demand, and their number will grow with the increasing number of cars. This means – this kind of business in skilful hands will bring you a good income, whether you created it or bought it.

Service stations are in demand, and their number will grow along with the growing number of cars.