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. We plan to offer our clients personalized service by offering convenience and rapid service. Sally Lauckner is an editor on NerdWallet's small-business team. 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. Drawing on her background in small business and startups, she covers lending, business finance and entrepreneurship. People are graciously buying cars and comfort. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. take status photos of any vehicle part. What often separates one lube shop from another is its creative marketing strategies. Asset valuations are also a great tool for internal use, and can help you keep track of spending and capital resources. Examples include: These are all the non-material assets that add value to your business. All financial products, shopping products and services are presented without warranty. Meredith has worked as a writer and editor for more than a decade. 1 in 3 vehicle owners decide to change their own oil after purchasing a new vehicle. Jason was a huge help with my transaction! Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. LOCATION, LOCATION, LOCATION. Then, youll add back in any purchases that arent essential to operations, like vehicles or travel, that you report as business expenses. 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. Along with doing financial legwork, valuing your business also requires you to exercise control over any emotions. Why do diesel exhaust fluid (DEF) prices keep rising and falling? When you partner with our AutoCenter Sales team to buy a Jiffy Lube or another oil change Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. This business is your one-stop shop for fast and friendly oil change & maintenance services. San Diegos Spanish and Mexican heritage is reflected in many historic sites across the city, such as Mission San Diego de Alcala and Old Town San Diego State Historic Park. Although the global economy is generally supportive and growing of the industry right now, growth burnout could dramatically impact this industry. 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. We plan to let our customers know that we will only provide necessary repairs and service and will not try to charge them for services that they dont need. This approach will specifically help you determine an appropriate selling or purchase price based on your local market. Temple Curtis represents sales/management, Helen will focus on the finance/administration section of the business and Aaron will focus on the mechanical aspect of the business. Most likely, business owners will provide you with that number, so its important to understand how the business owner reached that value, and what these values reflect about the actual business. Why do diesel exhaust fluid (DEF) prices keep rising and falling? Next, you'll need to outline your business plan and model. 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. Note that each of the three co-owners will invest an equal amount. Jiffy Lube International is the main player in the franchise segment of the quick-lube chain industry. Later, too, you can use this list to create an overview of your companys value for potential buyers. At the end, the information is used to help formulate pricing, marketing and merchandising strategies. Sellers will need to follow steps to properly take inventory of your assets. 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. In 2016, 45% of consumers asked for premium products from their preferred quick lube business. Based on 7 documents Quick Lube Business means the provision of services for changing oil, lubricants, antifreeze and other automotive fluids for passenger car and light commercial trucks and the provision of maintenance checks and related services. 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. Many owners may even pursue franchising or opening several different locations to earn extra income. buying and selling) over the last 15 years. Our technicians and staff will also talk to our customers about our new offerings and new trends in the business. In order to see how electric cars are impacting the future of the automotive repair industry, it is important to understand how they work in the first place. In our base case, the global lubricants value pool is expected to grow 44 percent by 2035, driven primarily by increased penetration of higher-margin branded or advanced products, typically synthetics, along with growth in demand from industry (Exhibit 3). This information may be different than what you see when you visit a financial institution, service provider or specific products site. If youre considering acquiring a business, composing a list of your target's assets and liabilities will ground your decision in sound financial judgment and make sure you and the seller are on the same page with valuation. I will only use Jason for (Digital Dealer), #20. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. Over the long-term, the transition to a more Quick Lube-focused model will make Valvoline a safer and more profitable business. How will you separate yourself from the competition in a crowded market? Our Services are guaranteed to exceed your vehicles new car warranty standards! Jiffy Lube is a leading provider of automotive preventive maintenance. Because the process for determining the value of a small business is complicated, you might want to consider consulting a professional business broker or accountant that specializes in valuation, rather than going it alone. As we mentioned earlier, a businesss SDE multiple and the method of valuation varies according to a few factors, including the strength of the industry. The service requires full JavaScript support in order to view this website. Buyers obviously won't need all of these documents, but they should still review their own financials. Victory Lane Quick Oil Change. The quick lube industry focuses on providing oil changing services for automobiles. (Car Wash Magazine), #4. Wherever you are in your businesss lifecycle, you'll want to know how to value a small business sooner rather than later. The visitor industry provides employment for more than 160,000 people. So, most maintenance on electric cars will be more software driven. We believe everyone should be able to make financial decisions with confidence. If you ever want to learn . explaining everything in detail. 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. (Business Wire), #16. (If you used EBITDA to value your business, youll use an EBITDA multiple.) Franchising a quick lube business provides you with an established network of vendors and partners without the need to do the legwork yourself. Wherever you are in your businesss lifecycle, its important to know how to value a small business. It's called Jiffy Lube Multicare. Complies with federal and state vehicle requirements by testing engine, safety, and combustion control standards. #1. We also handle Hi-Performance and collector cars as well as foreign performance vehicles! Contact us today! Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. You'll need a minimum of $50,000 cash as a startup fee. This is where you come in! unconditionally recommend Mike and his team. However, this does not influence our evaluations. Consumers are shifting toward premium products within the quick lube industry. Bigger companies have an advantage in brand recognition, but the operations of individual locations are similar. 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. This method is especially useful if your business mostly holds investments or real estate; isnt profitable; or if youre seeking to liquidate. These are some of the most efficient cars to ever be driven. (Business Wire), #13. In charge of creating marketing and sales strategies, etc. If a synthetic oil change is requested, the price of the oil change jumps to $70.31. 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. Note that industry operations are labor-intensive: annual revenue per employee is just $60,000. So, most hybrid-electric cars do not ever run on electricity alone. Paul Hodowanic. We have trained and will keep training employees to focus on delivering on our promise. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Youve come to the right place. Employee outings, charitable donations, one-time purchases and your own salary can all be included in your SDE. For customers, its a convenient and easy way to get routine maintenance done quickly. Make sure your company checks these three boxes: You make steady profits. At Easy On Oil, we believe that by having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, our business location and shop will always bring in demand for quick lube services. Through 2028, the quick lube industry is expected to see lower levels of growth than in the past 5 yeas. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. About Your Results Quick lube businesses make it easy and affordable for vehicle owners to take care of this need without a large time investment. We plan to make sure we dont ever run out of a specific part, while maximizing inventory turnover. 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. To reach our local customer base, we will employ a marketing manager. The remaining are small privately-owned establishments. 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. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Printing of Packaging and Promotional Materials: Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. A good rule of thumb is to estimate how much a piece of equipment would sell for today, and use that number. Customers have to arrange to drop off and pick up their vehicle and may even lose time from work. 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. Performing services on brake systems to coolant flushes. If you're selling, your prospective buyer will need to understand how you generate revenue and will continue to. The quick lube industry is growing rapidly. Buying a quick lube allows business-savvy entrepreneurs a stable, revenue-generating opportunity due to the essential nature of the business. All financial products, shopping products and services are presented without warranty. Sources: New Constructs, LLC and company filings. If youre interested in learning more about the automotive business buying process and how our expert 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. Sample 1 Sample 2 Sample 3 Based on 6 documents We will hire professionals to help us achieve our objective of excellent service and unprecedented customer service. (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.). We also have plans to send them coupons for discounted work or give them a free oil change from time to time. Any business can use this approach to business valuation, as long as they can gather sufficient, relevant data on which to compare their business.
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