She is based in New York City. Business model: Your business model demonstrates how you make money, be it a subscription-based service, direct-to-consumer e-commerce, or B2B consulting. The service requires full JavaScript support in order to view this website. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 25 Quick Lube Industry Statistics, Trends & Analysis, 41 Food Truck Industry Statistics, Trends & Analysis, 47 Green Industry Statistics, Trends & Analysis, 49 High Tech Industry Statistics, Trends & Analysis, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. Easy On Oil boasts of a unique and well versed management team that will allow us achieve our objectives. Determines vehicle condition by conducting inspections and identifying worn and damaged parts. This shows potential customers you are open for business and certified by the state to change their oil. This method can be used to value a business for sale as well as raising capital. Although there will still be many different tasks to complete with your hands, we will grow and advance with this trend by employing the services of a software engineer in due time. Establishing a firm financial foundation will help you maintain realistic expectations about the value of your company (or the company youre hoping to buy). Investigate numbers that dont seem right, and dont be afraid to call in an accountant for extra help. second to none. Over the past decade, improved technology and extraction techniques enabled industry . Keeps shop equipment operating by following operating instructions; troubleshooting breakdowns; maintaining supplies; performing preventive maintenance; calling for repairs. Here is a list of our partners and here's how we make money. Oil Change Services in the US industry trends (2017-2022) The Oil Drilling and Gas Extraction industry in Canada has endured significant volatility over the five years to 2022. At Easy On Oil, our major weaknesses will be the time and resources it will take us to establish and publicize our services to the people of San Diego. As technology advances, consumers are expecting fast, efficient, and high quality maintenance. Youll calculate your businesss value with a specified formula, taking into account your assets, earnings, industry, and any debt or losses. Then, you can demonstrate to potential buyers what makes your business stand out. 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. Our partners compensate us. Knowing your peer companies will also help you assess your market share and growth potential. Franchise Quick Lube, Car Wash, and RE in New Mexico! At Easy On Oil, we strongly believe we will experience steady growth in profitability over the next three years of operation. Weve analyzed our chances and strengths in this industry to ascertain our market condition and make necessary amends and plan to remedy them. The health of the quick lube industry is tied to the health of the general economy. Like EBITDA, business owners calculate SDE to determine the true value of their business for a new owner, so your SDE will include expenses like the income you report to the IRS, non-cash expenses whatever revenue your business actually generates. The profitability of individual companies depends on convenient location and good marketing. We will always stress the fact that we only offer reliable services. Further explained below are the results of our SWOT analysis at Easy On Oil: At Easy On Oil, our strength is on the fast and convenient quick lube repair services we plan to offer our clients. (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.). NerdWallet's ratings are determined by our editorial team. Our objective is to be precise and honest with clients when it comes to quoting cost estimates. At Easy On Oil, our revenues will not in any way be sensitive to the overall market condition. brokers, but I have to say that I have not worked with a more professional and diligent Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. Another common method attributes value to a business based solely on its assets. 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. If you want to take the income approach, you can choose between two commonly used valuation methods. 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. 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. Protect your EATS system with Delo 600 ADF. Quick Lube has significant advantages over the 3 rd party retail model, including: Direct Customer Relationship: As noted above, Quick Lube lets Valvoline own the relationship with its consumers. Most of our competitors have adopted point-of-sale systems in their stores. For equipment or other depreciating assets, that value is usually somewhere between the sale price and the depreciated value. Your particular businesss SDE multiple will vary based on market volatility, where your business is located, your companys size, assets and how much risk is involved in transferring ownership. Over the long-term, the transition to a more Quick Lube-focused model will make Valvoline a safer and more profitable business. The business's cash-flow forecast is adjusted (or discounted) according to the risk involved in purchasing the business. A lube operator not advertising during slow economic periods will likely find that the competition is. Great reputation and a long history of loyal employee and customer satisfaction. Also our plans to make sure we maintain a referral network will give us the needed push in the industry. This influences which products we write about and where and how the product appears on a page. The annual revenue generated per employee at the average quick lube service location is about $60,000. Just 29% of vehicle owners take their oil changes to a business other than the dealership where they purchased their vehicle. www.ratchetandwrench.com is using a security service for protection against online attacks. Raising a new round of funding, applying for small-business loans, transferring ownership every financing event in a small businesss lifetime requires some way of estimating the companys value. We plan to give our clients a few business cards to hand out to friends when they talk about our quick lube services or buying new parts. In any of those cases, buyers will be interested in the individual value of your investments or equipment. Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil Change SM, and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. Our key advantage in San Diego will be the high-quality, rapid, and convenient quick lube service we plan to offer. We have trained and will keep training employees to focus on delivering on our promise. Theres a different SDE multiple for every industry. I went in for just an oil change and a lube, and I'll be taking all such . You will be redirected once the validation is complete. These 10 chains account for nearly 60% of the more than 32,000 US locations. And NOLN's top ranking shows 93 chains in the US with at least 6 locations. This allows the IC engine to focus on efficiency rather than trying to do everything as it does in an all-gas car. Electric vehicles impact the future of the automotive repair industry in many different ways. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. How to Valuate a Business One way to calculate a business's valuation is to subtract liabilities from assets. (Car Wash Magazine), #11. 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. Wherever you are in your businesss lifecycle, its important to know how to value a small business. How much is an oil change? Here is a list of our partners. Plus, its crucial to demonstrate to potential buyers how your business will continue to grow and turn a profit. 65% of business owners report that their competitors offer discounting to obtain new customers within their own service radius. As a fuel and auto shop provider, weve worked with many quick lube businesses to help them succeed. Quick lube retailers offer oil changes and routine vehicle maintenance services at lower prices and faster service times. Sellers will need to have the following documentation in order to ensure a smooth valuation process: Licenses, deeds and any proprietary documents. However, youre fully capable of valuing your business using your own resources. 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. Also, the local craft brewing industry attracts an increasing number of visitors for beer tours and the annual San Diego Beer Week in November. Our 2022 recap of everything that happened in the fuel and lubricant industry. We plan to leverage the highest degree of modern technology to manage a full range of automotive lubricants and parts inventory. Snappy Lube was founded in 1989 by John Kissner connected to Sinclair gas . In the United States, about 450 million oil changes are performed each year. The appeal of a quick lube business is easy to see. Another 22% of operators combine automotive repair with quick lube services. First, though, you have to get your financial information in order. Groups exist on the state and federal level to help with seed money. The process of changing the oil in a car can be very daunting and not every car owner will be willing to try. 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.

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