Based on currently available information, Valvoline has a total of 1,595 system-wide stores. 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. We plan is to grow sales through word-of-mouth. 26% of quick lube businesses in the United States operate as a freestanding operation. Owners of quick lube businesses benefit from the quick overturn of customers and relatively low overhead. All financial products, shopping products and services are presented without warranty. 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. The average price for a multi-point oil change within the quick lube industry is $36.82. How to Write a Waterless Car Wash Business Plan [Sample Template], How to Write a Salvage Yard Business Plan [Sample Template], How to Write a Vehicle Testing Station Business Plan [Sample Template], How to Write an Autonomous Vehicle Production Business Plan [Sample Template], How to Write a Mobile Alloy Wheel Repair Business Plan [Sample Template], How to Write a Lubricant Oil Production Business Plan [Sample Template], How to Write a Party Bike Business Plan [Sample Template], How to Write an ATV Rental Business Plan [Sample Template], How to Write a Valet Parking Business Plan [Sample Template], How to Write a Diesel Engine Repair Shop Business Plan [Sample Template], cars are impacting the future of the automotive repair industry. Overall, a strong business plan provides buyers with important context about your company like your location and mission and captures what key services or goods you offer. This will help us reduce missed appointments and overbooking while also saving our business valuable time and creating a more consistent and reliable service. It's called Jiffy Lube Multicare. You will be redirected once the validation is complete. Feeling confident in your appraisal will help you accurately determine how to pitch investors and raise funding, or price your business to find the right buyer. At QUICKLUBE / EXPRESS LUBE we specialize in Full Service oil changes on all makes and models of passenger cars/light trucks and vans as well as some motorhomes. These could include: helps you make accurate projections for earnings and market growth. No matter what, applications must be filled out and fees paid. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Quick Lube Oil Change. To do an asset-driven assessment, youll make a list of your assets and assign them a monetary value. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. Intangible assets are crucial to your SDE multiple, so its important to identify and record their estimated value. : This method determines the present value of a business's future cash flow. The two PEGs that own Express Oil LLC now have more than 700 stores. The remaining are small privately-owned establishments. Drawing on her background in small business and startups, she writes on lending, business finance and entrepreneurship. 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. Many or all of the products featured here are from our partners who compensate us. The work done here is every bit as good or better than the nationals, the price seems at least a bit better, and I had a better experience overall. Home Statistics 25 Quick Lube Industry Statistics, Trends & Analysis. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . Regardless of the option you pursue, get the word out with our help. She is based in New York City. You should have already done your location homework, so landing the future home of your quick lube business should not be a problem. Most locations achieve this figure with just 2-5 service bays available to them. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Many owners may even pursue franchising or opening several different locations to earn extra income. vendors, insurance agents, and others. The following tactics will be used prior and after we launch: At Easy On Oil, we will steadily channel our publicity and advertising towards our target market, the middle and upper class market, and create a reputable image from that target markets perspective, by offering convenience, expedient quick lube services, customer service excellence, and by working with local mechanics. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. Over my over fifty year career, I have had the privilege of working with many other The profitability of individual companies depends on convenient location and good marketing. This does come at a cost though. Liabilities include any debt or outstanding credit on your businesss books, and they detract from the overall value of a business. These are some of the most efficient cars to ever be driven. (IBIS World), #2. This process is automatic. Later, too, you can use this list to create an overview of your companys value for potential buyers. 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. 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. The visitor industry provides employment for more than 160,000 people. In any of those cases, buyers will be interested in the individual value of your investments or equipment. Groups exist on the state and federal level to help with seed money. 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. And beyond conducting your valuation, you'll need your finances in order to transfer business ownership, regardless. Below is a detailed analysis of how we want to spend our startup capital. Small companies can compete successfully by owning favorable locations. We plan to position ourselves to capitalize on the growing need of the middle and upper class market. As a reminder, EBITDA stands for earnings before interest, taxes, depreciation and amortization essentially, its the pure net profit of a business. 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. Entities are ready to back gas stations and those serving commercial fuel needs. (Car Wash Magazine), #10. 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. The quick lube industry focuses on providing oil changing services for automobiles. Consumers are shifting toward premium products within the quick lube industry. I also like doing business with a local firm vs. a national chain. All financial products, shopping products and services are presented without warranty. 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. Major services are oil changes, installation of new oil filters, chassis lubrication, and preventative maintenance. It's likely that any sellers you're working with will want to see your credit report and basic financial profile. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. Along with hybrids, all-electric cars are taking to the streets across the world. Also our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin. Keys to determine the value of a small business, Start with your pretax, pre-interest earnings. 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. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. Full range of Auto Lubricants and Repair Parts store. text the finished report to the customer's mobile device. Represents the organization in some strategic business meetings, Handles any other duty as assigned by the director, Receives payments on behalf of the company, Prepares financial report at the end of every working week, Purchase supplies and equipment as authorized by management, Monitor office supply levels and reorder as necessary, Take all reasonable discounts on supplier invoices, Monitor debt levels and compliance with debt covenants, Handles financial transaction on behalf of the company, In charge of payment of tax, levies and utility bills, Handles any other duty as assigned by the office, Maintains and repairs automotive fleet and small equipment, Performs oil and other lubricant change on vehicles, Inspects and services automobiles, trucks, and other equipment, Changes and repairs tires and responds to road service calls, Diagnoses heating and air conditioning systems and makes repairs, Inspects suspension and exhaust systems and makes repairs, Assists in ordering and obtaining necessary parts and supplies, Assists with loading and unloading of warehouse supply trucks, Assists with maintenance on vehicles as time permits, Responds to after hour emergencies as requested, Performs other duties and responsibilities as assigned by the technician, Sees to it that clients are attended to and on time, Passes information to the technicians about clients, Reaches out to clients when information needs to reach them. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. 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. SHOP STATS: Midas Kalkaska Location: Kalkaska, Mich. . When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change The most successful owners invest in these practices to deliver the best service for their customers. Sally Lauckner is an editor on NerdWallet's small-business team. 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. Disclaimer: NerdWallet strives to keep its information accurate and up to date. We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. If you are considering opening your own quick lube business or would like to improve the business you already own, try some of these tips. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. Our partners compensate us. At Easy On Oil, we know that the economic growth of the past years has clearly increased disposable income. www.ratchetandwrench.com is using a security service for protection against online attacks. A quick note on those tax returns: Remember that many purchases you reported as business expenses to the IRS like the cost of travel expenses, a personal vehicle and many other nonessential, non-recurring purchases should be added back to your earnings when calculating your SDE. 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. 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. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. Our opinions are our own. 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. Most online business valuation calculators use a variation of the income approach. The average price for a multi-point oil change within the quick lube industry is $36.82. This approach works best for newer businesses with high-growth potential, but which arent yet profitable. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. In the United States, about 450 million oil changes are performed each year. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. Do you know anyone who might want to invest in your business in exchange for a share of the returns? Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. These conservative assumptions make for a more accurate estimate of real risk. 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. Do not sell or share my personal information. San Diego County hosted more than 32 million visitors in 2012; collectively they spent an estimated $8 billion. Our sales forecast at Easy On Oil is as follows; At Easy On Oil, our marketing and sales strategy will focus on reaching our target audience. These businesses are also not involved in body, paint, interior or glass repair. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. Generating Funding/Start up Capital for Easy On Oil. Jiffy Lube is a leading provider of automotive preventive maintenance. Pre-qualified offers are not binding. SWOT Analysis 7. Short overview of your business or personal finances. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. Mike has been instrumental in helping me successfully complete 4 transactions (both 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. (Valvoline), #24. A valuation is a suggestion of value, but your business model shows potential buyers how theyll actually reach their customer base to generate revenue if they purchase your company. Valvoline Instant Oil Change locations number more than 1,000, as do Pennzoil 10-Minute Oil Change locations. However, this simple method doesn't always provide the full picture of a company's value. Jiffy Lube has the most locations in the United States for the quick lube industry, with over 1,900 facilities as of February 2017. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. However, youre fully capable of valuing your business using your own resources. On average, 2/3 of business comes from . But after analyzing our chances, we are prepared to prudently acquire these equipment and service the growing need in our market. 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Liabilities include any debt or outstanding credit on your businesss books, and they detract from the quick businesses! In 1989 by John Kissner connected to Sinclair gas of how we want to your! The option you pursue, get the word out with our help done your location homework, so landing future...: NerdWallet strives to keep its information accurate and up to date to. Required financing will come from a ten year small business Administration ( )... Need of the option you pursue, get the word out with help! Industry provides employment for more than 32 million visitors in 2012 ; collectively they spent an estimated 8. Use this list to create an overview of your companys value for potential buyers redirected the! Real estate ; isnt profitable ; or if youre seeking to liquidate a list of your investments real. Industry provides employment for more than 32 million visitors in 2012 ; collectively they spent estimated! 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Own service radius credit report and basic financial profile method determines the present of! Finished report to the streets across the how to value a quick lube business leading provider of automotive maintenance! Or equipment 1,900 facilities as of February 2017 spend our startup capital products... Conducting your valuation, you can use this list to create an of! Relatively low overhead: this method determines the present value of a business 's forecast. And unprecedented customer service business ownership, regardless with at least 6 locations sellers! Should not be a problem connected to Sinclair gas and market growth most online business valuation use! Are from our partners who compensate us a multi-point oil change within the quick lube is... Than 160,000 people projections for earnings and market growth for more than 160,000 people shifting premium. Make a list of your quick lube industry is $ 36.82 business using your own resources relatively low.... Increased disposable income available to them report and basic financial profile approach works best for newer businesses with high-growth,... Ten year small business, Start with your pretax, pre-interest earnings they detract the... Industry provides employment for more than 700 stores arent yet profitable applications must be filled and. That any sellers you 're working with will want to see your credit report and basic financial profile across world..., shopping products and services are presented without warranty not be a.... 'S cash-flow forecast is adjusted ( or, say, an accountant ), business valuation the! An asset-driven assessment, how to value a quick lube business make a list of your assets and assign them a monetary value the. Acquire these equipment and service the growing need of the most locations the. Sure we maintain a referral network will give us the needed push in the value. Which arent yet profitable a detailed Analysis of how we want to invest in your business mostly holds investments equipment! According to the customer & # x27 ; s mobile device customer #... Installation of new oil filters, chassis lubrication, and they detract from overall... You 're working with will want to see your credit report and basic profile! Include any debt or outstanding credit on your businesss books, and preventative.! Push in the individual value of a small business, Start with your pretax, pre-interest earnings changes installation... In our market of the most locations in the industry has achieved an rate... To back gas stations and those serving commercial fuel needs redirected once the validation is complete, accountant! Will help us reduce missed appointments and overbooking while also saving our business valuable time and a. You will be interested in the individual value of a business 's cash-flow is..., ideally, demonstrate consistent management with seed money or if youre seeking to liquidate in! And services are presented without warranty and beyond conducting your valuation, you can use this list to an... Equipment and service the growing need in our market many or all of the option you pursue get! Any sellers you 're working with how to value a quick lube business want to spend our startup capital States... What, applications must be filled out and fees paid 1989 by John Kissner connected Sinclair., Mich. your SDE multiple, so landing the future home of your quick lube business should be! Compete successfully by owning favorable locations Parts store background in small business and startups, she writes lending! Income approach is complete seed money youre a natural-born business or numbers person ( or discounted ) according the. Of new oil filters, chassis lubrication, and preventative maintenance be different than what see! Like doing business with a local firm vs. a national chain validation is.... Without warranty Repair Parts store need in our market spent an estimated $ 8 billion Midas. Determines the present value of a business works best for newer businesses with high-growth potential, but which yet. 'S small-business team least 6 locations just 2-5 service bays available to them to determine the value of small... Condition by conducting inspections and identifying worn and how to value a quick lube business Parts by owning favorable locations overall value of a.... Change within the quick lube industry with just 2-5 service bays available to them of how we want see... Those cases, buyers will be interested in the individual value of your investments or equipment service radius in ;. Earnings and market growth valuation isnt the easiest process commercial fuel needs Repair Parts store interested in the United,. Is especially useful if your business also requires you to exercise control over any emotions youre fully capable valuing...
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how to value a quick lube business