Start An Auto Electrical Repair Business - Business Ideas

Updated: September 15th, 2022
Start An Auto Electrical Repair Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Auto electrical repair businesses diagnose and replace faulty electrical components such as alternators, starter motors, and batteries. The repair technicians have the skills to locate electrical shorts, grounds, and resistance, using multimeters, OBD, and other dealer-specific software scan tools.

Are you an aspiring entrepreneur looking to invest in the auto electrical service and repair business? Starting an auto electrical repair and diagnosis business can be a profitable and fun venture.

Starting an auto electrical repair business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell auto electrical repairing service, or selling auto electrical repairing service online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$65.3B
starting costs
$18K
gross margin
90%
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs

Employee & Freelancer Expenses

$151

$252

Website Costs

$223

$7,015

Business Formation Fees

$600

$4,700

Vehicle Expenses

$0

$10,000

Retail Business Expenses

$1,250

$6,650

Advertising & Marketing Costs

$75

$3,986

Software Expenses

$162

$2,720

Office Space Expenses

$0

$100

Specific Industry Expenses

$0

$500

Total Startup Costs

$2,461

$35,923

Successful Businesses

Business URL Rank

Mechanic Advisor

mechanicadvisor.com

113,854

Meineke Car Care

meineke.com

158,781

Delphi Technologies

delphi.com

283,250

Acdelco

acdelco.com

296,400

DBElectrical

dbelectrical.com

440,358

CE Auto Electric Supply – Automotive Electrical Solutions

ceautoelectricsupply.com

1,053,366

Hollenshade's Auto Repair Service

hollenshades.com

1,297,034

J&N

jnelectric.com

1,977,972

IAE – Since 1915

illinoisautoelectric.com

2,058,804

YouFixCars.com

youfixcars.com

2,693,815

autorepairsanantonio.com

3,046,253

Pros & Cons

Pros Description

Little startup costs required

The cost to start a auto electrical repair business costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.

Rewarding work

Starting a auto electrical repair business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Auto Electrical Repair Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting an auto electrical repair business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A auto electrical repair business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Work can be inconsistent

As a auto electrical repair business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a auto electrical repair business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Taxes

As a auto electrical repair business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a auto electrical repair business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜