In the current context, opening a garage can be an interesting and beneficial alternative for mechanics and workshop managers who wish to become independent. Indeed, the automotive market is currently conducive to the development of entrepreneurship. In fact, according to the Automobile Club Association (ACA), we are witnessing the growth of the personal fleet and its aging. In fact, individuals are increasingly rare to repair their own cars. This is due to the technological complexity of new vehicles. This is also the result of new regulations allowing the maintenance of a new vehicle at a nearby examination center without compromising the manufacturer’s warranty. These are factors that clearly play in favor of automotive garages.
Do you want to start and create your own garage for motorcycles or cars? Discover what you need to know to undertake!
Further reading : How to change the oil in your Clio 4?
In this article, LegalVision puts its legal expertise at your service to help you understand everything that is happening on this subject. Here is a summary of the key points to remember:
I/ Opening a garage: what are the steps to follow? II/ Administrative procedures to carry out for opening a garage III/ Opening a garage without a diploma: Is it possible? IV/ Are there other options to open a garage?
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I/ Opening a garage: what are the steps to follow?
Whether you are opening your bike or car garage, it is imperative to follow a series of steps. This is the same as any business creation project. Then, before undertaking the completion of the administrative formalities for registration, take the following points into account.
A) First step towards opening a garage: conduct a market study
It is undeniable that the market study is an essential step in preparing any business project. This allows the project owner to take stock of the project and ensure its commercial viability. The market study, conducted before the launch of the project, allows the entrepreneur to minimize the risk of failure as much as possible. To achieve this, it is necessary:
- Analyze the demand in the local market (customers)
- Study the existing supply (competition)
- Select suppliers for purchasing spare parts
- Conduct regulatory analysis for the sector
Good to know
Regarding regulations in particular, it should be noted that:
- The garage owner is subject to a result obligation
- He must display at the entrance of his establishment the all-inclusive hourly rates and the VAT-inclusive prices of the flat-rate services he offers.
- There are strict rules for breakdown and towing
- Waste management is subject to increasingly strict measures
B) Second step towards opening a garage: Write a business plan
Creating the business plan is a crucial step. In fact, this document gives you the opportunity to demonstrate the coherence of your project. Likewise, it allows you to verify that your business is truly profitable. Moreover, it is an effective way to convince your financial partners to develop and finance your project.
C) Step 3 to open a garage: Find a location
Of course, to be able to successfully carry out your business, you need to have a premises and not just any space. And for good reason, it must be able to accommodate all the necessary equipment and facilities for practicing your profession. In any case, there are several options available to you: buy your premises, rent one, or choose a lease with an option to purchase. It goes without saying that your choice mainly depends on your financial means at the time of launching your project and the growth prospects of your business.
To learn more about how to find a location at a good price, you can also consult our article on the subject.
D) Step 4 to open a garage: Consider the facilities and services offered
After securing the premises, it is worth considering the materials that your work as a garage requires daily. Mechanical parts, tires, engine oils, shock absorbers…, the spare parts you need must of course come from a reliable supplier to avoid unpleasant surprises. In addition, you need to define the services you want to provide to your customers: examination, technical inspection, oil change, repair, vehicle sales, etc. But that’s not all! It is also important to establish rates in advance and hourly rates for the services offered.
E) Fifth step to open a garage: Choose the legal form of your structure
Finally, you need to choose the legal status under which you wish to pursue your business. To do this, you should try to compare the existing legal forms by studying each of their advantages and disadvantages. Of course, your choice should also take into account your needs and expectations. You can then open a garage as an entrepreneur. Otherwise, creating a company may allow you to be more credible in the eyes of your clients. Be aware that most automotive mechanics who decide to open an automotive garage generally rely on creating an LLC.
II/ The administrative procedures to follow for opening a garage?
After determining the legal form for opening your garage, you need to start the registration procedure for your establishment. You will then have the option to do it yourself or go through a legal technology that will handle all the necessary administrative formalities to register your business with the RCS. The registration allows you to receive a Kbis extract that proves the legal existence of your business or micro-enterprise against third parties (clients, suppliers, and public authorities).
In any case, you must provide several documents that will form the registration application file. However, some supporting documents vary depending on the chosen legal status. For the transmission of your file to the relevant CFE, you can send it by mail or submit it in person. On the other hand, you can perfectly register online via infogreffe.fr, a very advantageous option that will save you time.
Please note that after verifying the file, the CFE will redistribute the elements related to your creation to the concerned organizations. The INSEE, the USSAF, the tax services (EIS), the commercial court registry, and social security for self-employed workers (for micro-entrepreneurs).
III/ Opening a garage without a diploma: Is it possible?
You are probably wondering if opening a garage requires certain qualifications and if you can do it even if you do not have a diploma? So, you should know that nothing prevents you from opening a garage without a diploma. However, this can only be done under certain conditions. Indeed, it is imperative that you have professional experience in the industry. In this case, you have two solutions to open a mechanical garage or a solidarity garage:
- Diploma in automotive mechanics (CAP mechanics, Bac pro mechanics, or BTS mechanics)
- Certification of at least 3 years of experience as an automotive mechanic
IV/ Are there other options to open a garage?
In addition to opening your own garage, other options are also possible. Discover those right away.
A) Take over an existing garage
In fact, you can opt for the acquisition of an already existing garage. Word of mouth, physical prospecting, searching for garage sale sites… There are also many solutions to find the deal that meets your criteria. However, in the context of a garage business purchase, special attention must be paid to several key points before making a commitment:
- Why is the establishment being transferred? Low profitability, retirement, etc.?
- Is the motorcycle or garage offered for sale under a brand?
- Does the initiator offer support in the context of the acquisition?
- What is the type of offer? Is the sale simply about business or about walls and business?
B) Become a dealer
If you open your own garage, becoming a car dealer is an option to consider. In this spirit, you are obliged to partner with a brand. This means that you must earn the trust of the company so that it gives its approval for signing a dealership contract with you. However, this approach does not give you the choice of geographical area. On the other hand, you will benefit from exclusive sales of the brand’s products in your area.
To become a car dealer, you can:
- Create your dealership
- Take one
C) Open a duty-free garage
Another alternative to consider when opening the garage is to undertake a franchise. Moreover, there are many franchises in the automotive industry. Opening a duty-free garage also offers many interesting advantages:
- Benefit from the reputation of the network
- Benefit from the skills, know-how, and logistics of the Group
- Count on the brand’s support for opening its factory
- Ensure almost certain profitability
On the other hand, the franchisor may claim payment of a registration fee (usually substantial) and royalties. Therefore, your investment can potentially be significant. In addition, you are subject to several obligations in managing your garage.
In short, it is advisable to weigh the pros and cons before making a decision. Each situation is different for opening a car garage. Moreover, it is highly recommended to find the most appropriate option for your circumstances.
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