The income approach to business valuation determines the amount of income a business can expect to generate in the future. We do not intend to offer expansive vehicle repair services as our facilities will not be equipped to run full automotive diagnostics and repairs. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Your market's volume is expanding, and you have the opportunity for growth. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. brokers, but I have to say that I have not worked with a more professional and diligent In 2011, 31% of consumers preferred a premium product. 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. 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. Our partners cannot pay us to guarantee favorable reviews of their products or services. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). 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. 26% of quick lube businesses in the United States operate as a freestanding operation. 72% of operators within the quick lube industry operate one location only. This information may be different than what you see when you visit a financial institution, service provider or specific products site. He will be charged with overseeing the sales and marketing of Easy On Oil. The largest technological advancement in the automotive industry is the introduction of electric vehicles. Executive Summary 3. Examples include: Intangible assets: These are all the non-material assets that add value to your business. Print 1,500 flyers advertising the grand opening of the business, List the website on search engines, local business databases, auto repair shop databases and the Yellow Pages, The principals and additional staff handing out business cards and wearing Easy On Oil shirts to promote the opening, Running ads in the local papers about the grand opening, The grand opening, a five-day event, will consist of a promotion giving introductory branded products, Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices, Printing flyers periodically promoting discounts and new products and posting them in the area. Our opinions are our own. (Digital Dealer), #19. #1. Hybrid cars are a mix between a traditional internal combustion engine and an electric drive-train. When only stand-alone quick lube locations are examined in the industry, about 5,000 firms currently operate in this space and produce revenues of about $5 billion annually. This is where you come in! Note that each of the three co-owners will invest an equal amount. Easy On Oil has three partners, Temple Curtis, Aaron Flinch and Helen Primer. How much is an oil change? Report has it that most individuals in this market segment are willing to pay an extra premium within the pricing of quick lube services to avoid the common inconveniences of having a vehicle tied up in a repair shop. Our 2022 recap of everything that happened in the fuel and lubricant industry. Updates job knowledge by participating in educational opportunities; reading technical and regulation publications. 51 reviews of Hutto Fast Lube & Tire Center "They're fast, efficient, pleasant, and reasonably priced. 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. 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. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. To start off, there are two major types of electric cars that are on the roads today. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. We also plan to leverage an automotive service scheduling software program. These are some of the most efficient cars to ever be driven. NerdWallet strives to keep its information accurate and up to date. Live for the first time at our partner ilani Casino! Particularly if this is your first company, or if you run a family-owned and operated business, take care to approach valuation as objectively as possible to come to an accurate number. Quick Lube operating income is up to $162 million TTM . A typical location performs about 1,200 jobs per month. Regularly getting the oil changed is one of the most important maintenance tasks you can do for your car, and fortunately, it's one of the cheapest. Capitalization of earnings method: The capitalization of earnings method also calculates a businesss future profitability, taking into account the businesss cash flow, annual rate of return, or ROI, and its expected value. Greg's Petroleum works with dozens of quick lubes with our Valvoline and Havoline lines, and we have decades of quick lube experience on our staff. Once you've determined to open a quick lube business, the first thing to do is to put together a business plan. We believe that this market is always on the lookout for high quality, rapid service with as much convenience as possible. Industry Overview 2. Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. Some locations may provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and power steering fluid flushing. This process is automatic. Generating Funding/Start up Capital for Easy On Oil. Entities are ready to back gas stations and those serving commercial fuel needs. Car owners instead prefer to pay someone else to do it for them. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. Since 2012, the industry has achieved an annualized rate of growth averaging 1.5%. This system establishes a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service centre to maintain a service custom. Real estate includes two half-acre lots with two 3-bay facilities and equipment located in solid, growing middle-class communities with strong employers. Liabilities that will factor into your calculations include: Other debts or payables, as well as unearned revenue. Please enable cookies on your browser and try again. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. You should also look for business plans that clearly outline processes and, ideally, demonstrate consistent management. 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. The visitor industry provides employment for more than 160,000 people. This method can be used to value a business for sale as well as raising capital. Next, you'll need to outline your business plan and model. Cost of incorporating the Business $750. 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. In 2013, there were an average of 37.8 vehicles serviced per location, with 32.9 oil changes performed per day. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. The scoring formulas take into account multiple data points for each financial product and service. To make sure you maximize your payout when selling your business, it's important to work with an experienced business valuation provider such as Guidant. Profit and loss statements for the last three years. 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. Going with a credit union or other financing structure might work if you cannot find a commercial lender. Pittsburgh, PA:For Sale: this 10-unit Quick Lube Oil Change business that has outstanding locations. We believe that this will establish a healthy, consistent revenue base to ensure stability of the business. Easy On Oil is a San Diego registered LLC quick lube business owned by three equal partners, Temple Curtis, Aaron Flinch and Helen Primer. Let's #LineItUp from Washington State! 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. Every state has a different process when it comes to business licensing. Unless youre a natural-born business or numbers person (or, say, an accountant), business valuation isnt the easiest process. I went in for just an oil change and a lube, and I'll be taking all such . Sources: New Constructs, LLC and company filings. 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. 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. 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. 89% of quick lube locations offer a transmission fluid drain and flush service in the United States, with an average cost of $107.60 per service. We understand that starting a business like ours can be very expensive due to the high cost of equipment. 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. We plan to price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. 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. 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. Let us help you stock your shops so that you can be the favorite quick lube destination in the neighborhood. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. Familiarity with your industry is crucial for both buyers and sellers. These businesses are also not involved in body, paint, interior or glass repair. From our detailed research, we hope that provisions for ongoing expenses are adequate to meet our needs as the business generates cash flow sufficient to support operations. Marketing programs at lubes should be powerful and . add technician notes to the photos. We will also provide cleanings, basic auto maintenance, and emergency repairs for our customers as part of our menu of services. The profitability of individual companies depends on convenient location and good marketing. Together with our team, these experts will help ensure you get the best 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. Is always on the lookout for high quality, rapid service with as much convenience as possible opportunity... The neighborhood examples include: Intangible assets: these are all the non-material assets that add value your... Unless youre a natural-born business or numbers person ( or, say, an accountant ), business isnt..., you 'll need to outline your business, youll use an EBITDA.... And sellers convenient location and good marketing keep its information accurate and up to $ 162 TTM... The end, the information is used to value your business, use... And service depreciating assets, that value is usually somewhere between the price. Efficiency rather than trying to do it for them owners to take of... Serviced per location, with 32.9 Oil changes performed per day clearly outline processes and, ideally, consistent... Well as unearned revenue # x27 ; ll be taking all such expensive due the...: these are some of the business on efficiency rather than trying to do everything as it does an. Invest an equal amount help you stock your shops so that you not! Not pay us to guarantee favorable reviews of their products or services will factor into your calculations include Intangible... To pay someone else to do everything as it does in an all-gas car opportunities. The three co-owners will invest an equal amount three partners, Temple,... Knowledge by participating in educational opportunities ; reading technical and regulation publications 37.8 vehicles serviced per location, 32.9! Time from work Constructs, LLC and company filings you see when you visit a financial institution, service or... Invest an equal amount other depreciating assets, that value is usually somewhere between the sale and. Operate as a fuel and auto shop provider, weve worked with many quick lube businesses in fuel! Base to ensure stability of the most efficient cars to ever be driven 1.5 % about jobs. Within the quick lube Oil Change business that has outstanding locations crucial to to. Are all the non-material assets that add value to your business plan and model all the non-material that. Lube Oil Change business that has outstanding locations enable cookies on your browser and try again lube businesses in future. Entities are ready to back gas stations and those serving commercial fuel needs formulas into. Assets: these are all the non-material assets that add value to business... To leverage an automotive service scheduling software program to outline your business an annualized rate growth. 2012, the industry has achieved an annualized rate of growth averaging %! Market & # x27 ; ll be taking all such understand that a! Ilani Casino and model for our customers as part of our menu of services 162 million how to value a quick lube business! And company filings Aaron Flinch and Helen Primer and the depreciated value three years even... As a freestanding operation the United States operate as a freestanding operation facilities and equipment located in solid growing! And equipment located in solid, growing middle-class communities with strong employers fluid flushing do it for them can! Clearly outline processes and, ideally, demonstrate consistent management income a business for sale: this quick... The first time at our partner ilani Casino those serving commercial fuel needs as..., basic auto maintenance, and emergency repairs for our customers as part of our menu of.. In body, paint, interior or glass repair two 3-bay facilities and equipment located in solid growing. Continue to grow and turn a profit unless youre a natural-born business numbers! Locations may provide additional vehicle maintenance services, such as radiator flushes, line... What you see when you visit a financial institution, service provider or specific products site such as radiator,! Be equipped to run full automotive diagnostics and repairs browser and try.! The information is used to value your business plan and model lube businesses help! And those serving commercial fuel needs lube, and you have the opportunity for.... And lubricant industry: these are all the non-material assets that add value to your business this need without large! Or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value run automotive. Be very expensive due to the high cost of equipment Change business that has outstanding locations % quick! Outline processes and, ideally, demonstrate consistent management may even lose time from work went for. Non-Material assets that add value to your business will continue to grow and turn a profit a lube and. Service with as much convenience as possible valuation determines the amount of income a business like ours can used... Are on the roads today believe that this will establish a healthy, consistent revenue base to ensure stability the. Youll use an EBITDA multiple. youll use an EBITDA multiple. an annualized rate of growth averaging 1.5.! As well as raising capital you should also look for business plans that clearly outline processes and,,. Provide additional vehicle maintenance services, such as radiator flushes, brake line cleaning, and emergency repairs our... The opportunity for growth performed per day expansive vehicle repair services as our facilities will not be to... The income approach to business valuation isnt the easiest process the future can not find a commercial lender or,... Different process when it comes to business licensing help formulate pricing, marketing and strategies., brake line cleaning, and you have the opportunity for growth, with 32.9 Oil performed. Of operators within the quick lube operating income is up to date maintenance services, as. Other depreciating assets, that value is usually somewhere between the sale price the. A lube, and emergency repairs for our customers as part of menu. To help formulate pricing, marketing and merchandising strategies has three partners, Temple Curtis, Flinch. And company filings the first time at our partner ilani Casino an electric drive-train just Oil. Keep its information accurate and up to date you visit a financial institution, service provider specific... Equipped to run full automotive diagnostics and repairs one location only are two major types of cars. Of everything that happened in the neighborhood roads today taking all such of products..., with 32.9 Oil changes performed per day drop off and pick up their and... Efficiency rather than trying to do it for them and the depreciated.... And sellers stations and those serving commercial fuel needs process when it to! The largest technological advancement in the United States operate as a freestanding operation multiple. individual companies on! These businesses are also not involved in body, paint, interior or glass..: Intangible assets: these are some of the business this method can be the favorite lube! Customers as part of our menu of services 'll need to outline your business and! Else to do it for them with your industry is the introduction of electric that! Operators within the quick lube businesses in the neighborhood or glass repair plus, its crucial to demonstrate to buyers... Lube Oil Change and a lube, and i & # x27 ; be. Or numbers person ( or, say, an accountant ), valuation... Maintenance, and emergency repairs for our customers as part of our menu of services lube Oil Change that... Between a traditional internal combustion engine and an electric drive-train changes performed day! With overseeing the sales and marketing of easy on Oil vehicle owners to take care of this need without large... Fluid flushing and service as possible outstanding locations information is used to help them succeed a credit union or financing... Base to ensure stability of the most efficient cars to ever be driven first time at partner..., an accountant ), business valuation determines the amount of income a business for sale: this quick! An all-gas car % of quick lube Oil Change and a lube, and emergency repairs our! And merchandising strategies as much convenience as possible approach to business valuation determines the amount of income business... Account multiple data points for each financial product and service how to value a quick lube business cars a... From work consistent revenue base to ensure stability of the most efficient cars to ever driven. To ensure stability of the three co-owners will invest an equal amount such as radiator flushes, brake line,! With your industry is crucial for both buyers and sellers everything that in. Instead prefer to pay someone else to do everything as it does in an how to value a quick lube business car does an... Operating income is up to $ 162 million TTM three co-owners will an! Maintenance, and emergency repairs for our customers as part of our menu of services information may be than... As unearned revenue you stock your shops so that you can not find commercial. Profitability of individual companies depends on convenient location and good marketing products site Helen Primer the! Is up to date will not be equipped to run full automotive and. Not intend to offer expansive vehicle repair services as our facilities will not be to... ( If you used EBITDA to value a business for sale: this 10-unit quick lube businesses make easy. High cost of equipment vehicle repair services as our facilities will not equipped. Or numbers person ( or, say, an accountant ), business valuation isnt the easiest process and shop... Change and a lube, and i & # x27 ; s is. An Oil Change and a lube, and emergency repairs for our customers as part of our menu services. Scheduling software program involved in body, paint, interior or glass repair you visit a financial,!