Sample Small Engine Repair Shop Business Plan


Starting an engine repair shop is a very lucrative and thriving business regardless of the state or country where it is operating.

This is because people are and will always be in need of your help in repairing two or more appliances in their homes, offices or shops.

In starting an engine repair shop, you can either start on a small scale or large scale depending on what you want as the business owner and also depending on your resources and capabilities. When you start on a small scale, you have the choice of expanding the business later on.

This post will be focusing on how to start an engine shop on a small scale, the knowledge requires of you as the business owner, the requirements of the business and steps that needs to be taken in starting the business.

It is important that you understand what a small engine repair company means and how to start it so you can be ready for any challenges that comes your way in the process if starting the business and also to succeed at it. It is not a good idea to start a business without knowing what it takes to start it because this might eventually lead to failure on your own part.

First and foremost, you need to have knowledge of how to repair engines before starting the business. It is necessary that you know to repair small engines even though you might eventually hire an expert or specialist that will be doing the repairs.

Here is a sample business plan for starting a small engine repair service.

  • Generate Startup Money

You need capital to start any business. It is necessary that you get the money you need to start the business before engaging in any process.

You can get your start up money by recruiting new investors to help invest in your business. The start up money is very important because a business barely exist without money.

You should also endeavor to get cash flow for your business to avoid indebtedness or frozen business. Cash flow helps in getting money whenever it is needed. You can generate cash flow by deciding in the type of engines that you will be repairing, the price at which they will be repaired which will be added up to your VAT to roughly know how much you will be getting at the end of the year.

  • Look for a Location

Your business needs to be located in a good place that is suitable for the business therefore you need to carefully decide on the location for your business. An engine repair shop needs to be located in a highly populated area especially residential areas where we have houses and offices.

The area where you are planning to have your business should be carefully examined to know if you are surrounded by competitors and how much competition you will have. It should also be an area that is easily accessible and easily located because nobody wants to get missing looking for your repair shop.

You should also ensure that the location will allow the type of your business before you proceed with it. It wouldn’t be a good idea to find out that such businesses are not allowed in the location after the land has been paid for.

  • Registration of your Business

All businesses no matter the type or scale needs to be registered. You will have to register your business with the state or county clerk’s office and also know the rules and regulations surrounding your type of business. It might not require lots of paper works if the location is in a small community unlike big cities.

In registering your business, you need to decide on the name of your business, whether it is a sole proprietorship or partnership business and also if you are forming a corporation or limited liability company.

  • Deciding on Prices

Deciding on the prices of your services cannot be overlooked if your business is to generate income and grow. In deciding your prices, you can check other competitors to know the prices of their services and use that as a guide in deciding yours.

You also need to decide if you will only charge for parts that are changed or will also charge for labour. Also, ensure that you are consistent with your prices because a customer might get angry for paying a higher price f than another person for the same repair.

  • Promoting your Business

Another important thing you need to do is to promote your business by marketing it to create awareness. You can create awareness by making flyers and business cards to give out and also through social media such as Facebook, Twitter, YouTube and so on.

All these forms of advertisement help reduce cost and are the most suitable for small businesses like this. Friends and families can also help in advertising your business.

Apart from the ones listed above, it is also important that you do not become greedy with your business. This means that you should not take on any repair that you know you cannot handle because it will end up destroying the reputation of your business and you might eventually lose customers.

Also, ensure that all repair jobs are done at a very reasonable price so people can keep patronizing you. It will be very bad for your business if your price is higher than that of competitors surrounding you. Customers always go for the cheaper one, this should be at the back of your mind.

Sticking to the time frame given to your customers, being fair and honest with them is also important. Treating them well and carefully will help your small engine repair business boom.

You price policy should be reviewed often times to have the best kind of policy and also to know if and when discounts will be given to customers that come to your engineer repair shop.


It is to provide adequate guide for entrepreneurs interested in this line of business, but with little or no knowledge on how to properly write a good business plan.

With the step by step guide provided, it is strongly believed the entrepreneur can easily replicate the sample guide provided in drafting his/her own unique business plan that will effectively be used to chart the course of sustainable growth for the business.

This small engine repair business plan sample will be written under the following;

  • Executive Summary
  • Our Products and Services
  • Vision Statement
  • Mission Statement
  • Competitive Advantage
  • Target Market
  • Revenue Sources
  • Sales Projection
  • Payment Channels
  • Publicity and Advert Strategies

Executive Summary

Ted’s Engine Repair Shop is a small engine repair business to be located in Arkansas. This repair shop will be providing repair services (specifically focusing on small engines) to both individual and corporate clients.

Engaging in this line of business, we are driven by a determination to compete favourably with other participants within the small engine repair service industry. This is buoyed by a massive investment to ensure that our goals are met. Also, we will be engaging the services of the very best of human resources within the services industry to ensure that our services are unrivalled. This will be supported by attractive remuneration packages to ensure that our entire workforce is adequately motivated.

Our Products and Services

We will be providing a wide range of small engine repairs for clients that include the repairs of small engines of different machine types, also we will be engaged in the sale of related machine parts plus the provision of refurbishing of old and worn out machines and parts. Also, training will be provided by us to interested individuals or groups to become certified small engine technicians.

Vision Statement

Our vision at Ted’s Engine Repair Shop is to be among the 10 top tier small engine repair businesses in Arkansas within our first 5 years from the commencement of business operations. Also, we have the vision of being the customer’s top choice in small engine repair within the state of Arkansas, eventually spreading our services to cover more key states.

Mission Statement

Our mission is to engage our customers to ensure their total satisfaction by ensuring we have an efficient feedback system that easily tells us what the clients want, and to tell us what they feel about services provided and where improvements are necessary. We will be driven by utmost professionalism aimed at achieving the best client patronage.

Competitive Advantage

A competitive advantage we have over other businesses offering similar services is our commitment to client satisfaction through a robust client feedback system, where clients will be given the opportunity of telling us how they feel about services provided, and if there are specific areas they feel can be improved upon.

Also, we will be hiring only the best professionals, with vast experience in the small engine repair service industry for our workforce. These professionals will bring in their wealth of experience that will make our business standout from the pack.

Target Market

Our target market will cover a wide range of small engine users; this is due to the fact that small engine users abound in almost every home or business. As such our target market will cover households, schools, hospitals, corporate offices, farms, ranches among a vast array of other places where the use of small engines is frequent.

Revenue Sources

Our sources of revenue will come mostly from all the services being provided by us. Hence, revenues will be generated from fees charged for trainings for new small engine technicians, the sale of refurbished small engines, servicing and repair of small engines and also the sale of small engine parts and accessories.

Sales Projection

With the services provided by us, and what is presently obtainable in the market, we have drawn out a three year sales projection that will see our revenue generating capacity increase considerably.

Arriving at these figures however discounts key unknown and unpredictable factors such as natural disasters and economic recession. Below is a brief chart that summarizes this information;

  • First Year $150,000
  • Second Year $250,000
  • Third Year $360,000

Payment Channels

We will be deploying payment channel options that give our esteemed clients the choice and freedom to choose any payment option of choice, thus eliminating the difficulty that comes with having limited payment options.

Some of these payment options include the acceptance cash payments, credit cards, and the use of POS machine for payments. Others include mobile banking and the acceptance of cheques among other payment options.

Publicity and Advert Strategies

We will be using a robust publicity platform to ensure we achieve the widest reach possible in creating awareness through the advertisement of our services to potential clients.

Among the channels to be used are the use of the both the print and electronic media through the placement of paid adverts, printing of hand bills and fliers and also the use of social media channels to spread awareness.


This article has been written as a guide or sample for interested entrepreneurs interested in the small engine repair area of business. Following the guide provided, all the entrepreneur needs is a brainstorm session to bring out the realities for his/her business, while following the example laid out in this article.

It is strongly believed that he/she would produce a sound small engine repair business plan that will effectively impact his/her business at the end.

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