According to AAMCO, the auto repair industry is one that generates 63 billion dollars in sales every year! On top of this, not one company controls more than 10% of the market share, allowing for new auto repair shops to enter the scene without having to compete against giant corporations that control the market.
If you are entering the auto repair industry with a shop of your own, you will need to prepare financial projections fo your business to share with lenders and potential investors in order to fund your startup. We can help with that!
ProjectionHub is a web application that allows you to create accurate and customizable financial projections and pro forma financial statements. This blog post will walk you through the process of using our web tool to generate financial projections for your own auto repair shop.
1. Sign up for ProjectionHub
- Feel free to learn more about ProjectionHub in general before signing up.
- You can sign up for a free trial by selecting the “Auto Repair” template here.
- If you have any questions about the model as you go, please email firstname.lastname@example.org
2. Add your business info
Once you sign up and confirm your account you will be asked to complete some general business info as seen below:
Adding the Auto Repair Business Model
Once you save the general business info, you will be able to add a business model. If you don’t already see a “Auto Repair” Business Model added on this page, you can click the add Business Model button as seen below to add your first auto repair unit.
3. Add your Revenue
Next you can click the orange button to Add Revenue to get started with your sales projections.
You will now have 2 options as you see in the image below:
- You can click “Add Revenue” which will give you the ability to add projected revenue numbers for each month for your shop.
- Or you can click “Add Google Sheet Revenue”. We have created a special Google Spreadsheet template specifically for auto repair companies that will give you more control in terms of adding assumptions for your sales projections.
- If you decide to utilize our Google Sheet template please see this guide on how to enable the Google Sheet Integration. You can see a screenshot of a portion of the Google Sheet below:
4. Add your expense projections
Once you complete your revenue projections you can move on to your expenses. There are 2 primary types of expenses:
- Startup Expenses
- Ongoing Operating Expenses
Some of the items listed as startup expenses should be entered as expenses on month 1 and some are actually cash spent on assets like:
- Leasehold improvements
If you have any of these types of expenses you will want to add them later as an “Asset” instead of an “Expense” on this page.
On the Expenses page in ProjectionHub you will be able to add/update your operating expenses. You will notice that the Expense page will come with a number of standard expense line items along with a default monthly expense for most of the line items. You can change any of these default expenses to reflect your specific situation.
Some expenses may be a % of your total sales, instead of a fixed monthly amount.
So as you see in the image above you can click the check boxes next to those expense categories and then in the drop down box you can select “Apply Industry Ratios” and then click “Apply”.
5. Add your assets
Next you can move on to the assets section. You will notice that the Assets page comes pre-loaded with the default assets that you might have as an auto repair company owner.
To add an asset, hover over the row, see the 3 dots on the left of the asset name, hover over, and click edit.
Next you will be able to add your Machinery And Equipment as an example. You can enter in the details of your assets as seen below:
6. Add your liabilities
Next you can move to the Liabilities page and add a loan. If you are going to borrow to help fund your startup costs, you can “Add a Liability” as seen below:
Then, you can go ahead and insert the details of the loan or other liability that you have acquired.
7. Add investors
Next you can add any personal investment you will be making as well as investment from outside investors.
Then, you can enter your investor’s information and the amount and terms of the investment:
8. Review your financial projection reports
Once you enter in all of your assumptions you will be able to review a number of reports. Here is a sampling of some of the reports, tables below:
On the Dashboard page you will be able to download your Income Statement, Balance Sheet and Cash Flow projections to share with your lender or investor.
Adding Multiple Auto Repair Units
Finally, let’s assume you want to add another auto repair shop in the future. All you need to do is go back to the “Business Model” page and add another “Auto Repair” business model. You can then label it Auto Repair–unit 2 and you can repeat the process. You can add as many units as you would like over time.
Again, you can get started by creating a ProjectionHub free trial account today.
As you complete your projections please don’t hesitate to reach out to us with questions at email@example.com