Guide for opening mechanic shop in UAE

Introduction

How to open a mechanic shop in UAE

Opening mechanic shops are profitable businesses in UAE, requiring sfortart-up capital. If you are self-motivated mechanic with basic business knowledge and access to capital, then learning how to open a mechanic shop might be right for you. However, if you already know how to perform repair services and have the tools needed to work on vehicles, starting an mechanic  shop is possible with virtually no money.

Lets see the cost elements which goes in opening a Mechanic shop in UAE

1. Diagnostic Machine
2. Shop rental fees range depending on the size
3. A good tool set with specialty tools
4. Insurance cost of a year.
5. A nice lift with installation

It is advisable to purchase tools in advance, You will have sufficient funds for opening the shop when the time comes. It’s important to have your own equipment as opposed to paying outside services to do tasks that you can accomplish in your shop,

There are many other factor which goes into the cost of opening your mechanic shop:

Business permits – find out if your locality requires permits for your operation, and any inspections that may be required. Cost  for  Commercial license for mainland business set up

• Initial Approval and tasheel AED 220 that is one time government fees.
• Name Approval-AED 620 one time fee
• License Fee
• Market fees 5% of premises rent to be paid to Economic Department.

Overhead Costs

One should be prepared for contingent expenses and unseen problems.

Once you’re running your own mechanic shop, you need to be prepared for more than just problems with repairing your customers’ vehicles:

• Customers who don’t pay on time
• Unexpected time off for your workers, due to sick days, vacations, etc.
• Peak and slow business periods -fluctuations in demand for your services – put away some cash from busy periods to help make it through the lean times

Labor – Even if you’re a one-man operation, you may need help for handling the phones, handling billing and customer accounts, balancing the bank statements, or even maintaining the workshop. Don’t underestimate the cost (and value) of hiring additional manpower to keep the shop running efficiently.

Certifications – many shops advertise that their mechanics are certified. This may not be important to you initially, but gaining and keeping up certifications could add to your perceived value to customers.

Advertising –The first step after establishing the business is advertising. With your own mechanic shop, you now have marketing responsibilities. You may want to invest in newspaper advertisements, distributing coupons for reduced-price oil changes, and even creation of website.

Steps for opening a Mechanic shop in UAE

Start Up Capital   

Analyze the capital required for opening a mechanic shop ,you  need to know the total projected cost to initiate  and running. Without estimation there is possibility to  run out of funds in the process of opening a mechanic shop. It is difficult to project certain costs ahead of time, the most common and expensive line items are easily predicted. Cost for  equipment, insurance, and rent can be ascertained well in advance Cost of any alterations to the locations chosen should also be included in the cost .It is imperative to  have enough capital or  funds to execute opening of mechanic shop plan. To get this loan from the bank, you will need to devise and compose a business plan which will outline the goals for your business, advertising costs and other start-up expenses.

Finding Location

Find a location. In the city or outskirts connecting to highways, these are key locations for opening a shop s because these are typically high traffic areas. But keep in mind, most of the expenses associated with starting your business will be far more substantial. The location for the mechanic shop can be bought or use rental services or lease.

Specializations

Specialization will keep you above the cutting edge. Many garages in UAE offer general repairs and services; you can increase business by offering specialized repairs which other shops may not provide. Some examples of specialized repairs and services include repainting, detailing and collision repair. As there is a  shift in the trend toward eco-friendliness, your city repair shop could make a profit specializing in hybrid or plug-in electric vehicles. New mechanics graduating from  technical courses will be equipped with this specialized knowledge and skills.

Employee Hiring

Finding exceptional employees can be a difficult and time-consuming task. However, it’s important to remember that there are auto mechanic colleges across the country ready to provide garages with newly trained employees. You’ll want to strike a good balance between experienced employees and recent grads, so your garage has an effective ratio of experts and novices. Most garages engage in the apprentice system. An auto mechanic apprenticeship is a paid position, which can last from one to four years. It is assumed that after the apprentice period, the employee will continue to work for the repair garage. By hiring apprentices, a new auto body shop can establish a long-term, fruitful working relationship with a skilled mechanic – carefully trained by its own experts.

Business Marketing

Good advertising will get customers to your shop, but fulfillment of promises made in your ads will keep those same customers coming back, year after year. Online advertisements can go a long way, especially if you have your own website on which to showcase promotions. As for your advertising content, a popular route is to offer customers guarantees, such as a guaranteed free repair if your brakes wear out within a certain time limit. Guaranteeing your work gives customers a reason to trust that you will do a good job. You may also choose to create an ethics statement which can be featured prominently in your workplace, or online. This may outline your duty to satisfy customers, conform to established laws, and to keep customers fully informed of costs throughout the repair process. Also launching a promotional blog or website using a free blogging platform that makes your presence known. Remember that word of mouth is one of your most valuable marketing tools. Referrals from satisfied customers will bring their friends and family members to your shop.

Above are the core steps involved in opening a mechanic shop in UAE. Once the shop is opened the greater responsibility starts now That is Management of work from labour to day’s work, deliveries and stock management.

Motorists will soon be able to choose from the best auto workshops to have their vehicles repaired as the Emirates Standarisation and Metrology Authority (Esma) formulates a new system that will categorise and rate workshops according of their service standards and expertise.

Esma is working on regulations to govern the sector across the country that will set a minimum requirement in terms of skills of mechanics and service standards for a workshop to operate

Reach Online Accounting Software enables you to run your business smoothly. We at Reach will take care of these administrative jobs through our software while you concentrate on the core activities of the business.

Reach VAT Software has all the features which will easily sync into your business for    smooth functioning of business operations.

Reach Accountant Online VAT Accounting Software is well integrated to the  provisions making the workshop and service business more VAT compliant and abide by to the above standards to make the workshops and service centre eligible.

Online Accounting Software to automate your Business

Our Accounting Software comes with features like Business Dashboard, CRM, Inventory Management, Billing & Invoicing, Repair Management, Accounting & Tax Management, Mobile App and many more.

Online, workshop management system designed to simplify the running of your business. With Reach Accountant online VAT accounting software you can easily organize all your daily activities from   your internet browser. Reach can be used by Automobile Workshops and Mechanic Shops to manage their Job cards, Inventory, Invoicing and Accounting. Reach Accountant for a total workshop solution.

Technology Used 

Run and manage your  trade accounts in the cloud, Connect and collaborate online with cloud accounting. Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Conclusion

Improve the workflow of your sales data by connecting with Reach Accountant:

• No double handling of accounts related data between your front and back office.
• Parts are automatically added to Reach Accountant as items.
• Invoices made are VAT compliant and is customized to workshops pattern.
• Customers and workshops are well connected work status  are automatically updated and customer is kept informed about the progress of work.