How to Start a Car Service Business

by LaoA; Updated September 26, 2017
Salesman showing couple a car

A car service business meets the needs of men and women who do not have a car. People who shop at supermarkets, department stores, attend after-hours events and live in a city where parking spaces disappear quickly make this type of business a high-demand service.

Step 1
Woman and mechanic looking at car repairs

Work for a car service business that already has customers. You will learn the rules of the car service business game when you work for a proven agency for two months or more. This will also demonstrate the amount of revenue your company can expect to generate when you start your own business. If you see that the company for whom you work does not earn much money each month, run your business in another area of town.

Step 2
Couple car shopping

Purchase a vehicle to start your business. Contact your state department of motor vehicles prior to buying the car because license requirements vary in each state. Try to find a car that comes with a glass barrier to provide better protection from criminal passengers who may try to steal your money.

Step 3
Business meeting

Employ other people. As your business grows, use the profits from your company to buy more vehicles, employ more staff and expand your business. When your company gets to a profitable point, find one location to park all of your cars.

Step 4

Advertise your business at locations where your target market gathers. For example, place flyers that contain your phone number, hours of operation, and company name at laundromats, supermarkets, nightclubs and other locations where people often need a ride. Once your service becomes known in an area, satisfied customers will refer your business to friends and family.

Tips

  • Hire an attorney to help set up your company with the proper business structure. They will let you know what entity works best for your particular situation. Spend the money you need on this service now, to avoid any problems later.

    Protect yourself and your drivers. Ask your insurance agency to let you know what policy will best protect both you and your employees. Remember that if a driver gets hurt on the job, you could have sizeable hospital charges on your hands if you do not have the proper coverage.

Photo Credits

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