Have you always dreamed of owning your own small business? A small venture that would bring you both pleasure and a stable income. Starting a small engine repair shop could really be the best decision of your life. There are a number of obvious advantages: low start-up costs, high profit margins, and little competition in the market. Welcome to UDC Parts' courses on smart investing.
What Is Small Engine Repair?
What you will be dealing with first and foremost will require solid technical knowledge. You will potentially be servicing the following types of equipment:
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Lawn mowers
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Snow removal machines
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Chainsaws
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Small vehicle engines
In most cases, customers will want repairs done quickly, as well as certain guarantees of your skills, since the engine is the most expensive part of any equipment. So, in addition to the repair itself, it is also important to find common ground with people in the small engine business. Briefly tell them about the work, your experience with similar engines, and why the price for the service will be exactly that.
A combination of high-quality repairs and equally high-quality customer service can be exactly what sets you apart from your competitors, who may be lacking in one area or another.
Is Small Engine Repair Profitable?
Recent in-depth studies by well-known companies show that the market for small engines (anything up to 25 horsepower) is only growing. People actively use various equipment, both for private use (lawn mowers) and for business purposes (generators). And, of course, it does not always withstand the load. Work and improve your reputation among customers. A loyal base of appreciators of your service is the only sure way.
In terms of numbers, you can expect a net income of between $40,000 and $80,000 from a single small service. In the case of a successful location and, accordingly, increased demand, we can talk about an annual net revenue of around $100,000. And, of course, no one limits you to a single location. A network of several locations in one city can bring you much more impressive figures.
Dozens of factors will influence the provision of your service, but on average, for less complex work, you can easily charge around $350. If the engine is really in bad shape and requires comprehensive service, the bill can rise to $600 or more per service.
Using the right strategies, you can also achieve a margin of up to 30%, a very good indicator for a service-based business. But most importantly, this industry will not decline for long. Yes, electric equipment is gaining popularity, but there is still a huge amount of small-engine equipment worldwide, and all of it needs maintenance.
How Much Does It Cost to Start a Small Engine Repair Shop?
How much does it cost to start a small engine repair shop is a rather complex question, and we definitely need a short list here. So, you will definitely be required to make the following investments:
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Tools and specialized equipment, including fault diagnosis equipment. The cost of such a set can range from a few hundred dollars to several thousand dollars. In any case, it will not be a huge investment. We are not talking about complex equipment from fields such as dentistry. Everything is quite simple and affordable.
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Renting space. This expense can be avoided altogether. Have you considered how to start a small engine repair business from home? If you have enough space in your garage, consider this option. Many successful businesses started out in places like this.
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Acquisition of licenses and necessary certifications, which should not exceed $1,000
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A set of necessary consumables. Purchasing them for each individual customer is not a good business model. You should always have a set of basic replacement materials on hand, which will allow you to cover most basic jobs.
Overall, the initial investment is not sky-high. Almost anyone can get into the small engine repair business. We would even say that it's a good opportunity to test your business acumen and see if private enterprise is right for you.
How to Start a Small Engine Repair Business from Home
Ready to start a new chapter in your life? Something great could really begin behind your garage doors. The main thing is to carefully think through a plan you will follow on your own or with the support of friends and partners.
First, honestly assess your technical skills. You may have been able to handle equipment for personal use successfully, but that's not the same as equipment from different brands and for various purposes. You need to clearly understand whether you are entering this business on your own or whether you should seek the support of more experienced professionals.
Create a Business Plan
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Clear vision. Right from the start, you need to understand how many potential customers there are, who your clients are, which area of the settlement your efforts are focused on, and what final figures you need to achieve at the end of the month and year.
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Services provided. No one limits you to repairs and maintenance. Your knowledge may extend beyond these areas of expertise, and you are also ready to undertake custom modifications for specific requests.
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Financial projections. You must make a calculation that includes key factors such as equipment and salary costs, as well as the corresponding prices for services, which should cover all of this with a margin. Don't forget to include any possible expenses arising unexpectedly in the cost. Don't be afraid to set high prices for additional services or tough expertise for this market.
Choose a Business Structure
The optimal option for this business would be establishing a limited liability company. This type of company will provide you with protection against force majeure situations, while at the same time, you will not have to worry too much about taxes. You can focus on running your business rather than on accounting. Unless, of course, you want to ask yourself daily, “Is small engine repair profitable?”
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Decide on the type of organization from which you will conduct your activities:
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Sole proprietorship
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LLC
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Corporation
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Get the right paperwork together. Licenses and permits from your state are legally necessary to show your customers. They need to feel good about you and know you're running a legit, high-quality business that's totally legal. Take care of this and determine which regulatory agencies decide on the following issues.
Choosing and setting up a workplace
You will need to decide whether to work from your own garage or rent a space. Look into the option of a mobile repair base. It is difficult to implement, but it can set you apart from your competitors.
At the very beginning, you can, of course, start with the set of tools you used to repair your personal equipment, but it won't last forever. You will need:
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Hand tools (wrenches, screwdrivers, pliers)
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Power tools (drills, saws)
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Safety gear (gloves, goggles)
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Engine diagnostic tools
Your workspace should be spacious, and you should have easy access to all your tools. Creating a hierarchy of side tables and hanging racks that make sense will help you work faster.
It's a great idea to create separate areas for disassembly, cleaning, and engine assembly. The cleaned debris mustn't get back into the mechanisms.
A system for labeling parts and consumables will help you add more order to the chaos that is bound to ensue when you have many orders. Keep your workspace tidy so you never get confused between orders and types of parts.
How UDC Parts Can Help Your Small Engine Repair Business
You must order various spares regularly when starting your small engine repair business. In this regard, finding a supplier with whom you feel most comfortable working is important. UDC Parts is ready to become that reliable partner for you.
Instant product selection
First, we invite you to visit our official website and evaluate its usability. You need to select materials quickly, and on the UDC Parts website, you can do this in several ways at once:
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Enter the model name of the equipment in the search field to get a complete list of compatible products.
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Put the exact name of the spare part, indicating its OEM number.
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Use the quick filter by brand and model.
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Go to the category of products you are interested in and perform a search yourself.
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Our support team is also always ready to help you with your choice.
If you are an experienced technical specialist who enjoys studying product specifications, comparing products, and selecting consumables individually, we have created a convenient product catalog organized by category. So, what are we looking for?
Delivered by the speed of light
It is important to note that you will receive your goods within three days after placing your order. This means your customer will not have to wait weeks for you to complete the work.
The OEM-equivalent part will be sent to you in our branded packaging. It fully complies with its stated technical characteristics and is fully compatible, as indicated on the website. The spare parts are universal, so they can really fit dozens of equipment models from different brands.
Attractive offers
And, of course, savings. The website always has a certain number of items already discounted, which is great for budget-conscious shoppers or even those exploring new ventures, like wondering are small engine repair shops profitable. You can select products based on this parameter. In any case, the product discount is also activated when you purchase two or more items. Get a substantial discount on large orders.
The business portal and its benefits
Tell us briefly about your business, complete a short registration on our separate business portal, and receive a discount of up to 35% on the total amount. We are always ready to discuss the details of our cooperation with you, whether it be delivery details or providing you with individual working conditions, including financial ones.
List of helpful advice
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Start small. If you have limited investment, proceed in phases. To expand your tool and equipment inventory, you will only need to complete one job at a time. Step by step, you can improve your workshop and eventually achieve something greater.
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When answering phone calls, do so as a company representative, rather than just saying “Hello” to the receiver. Add a touch of professionalism from the very first stages of communication with the customer.
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Constantly improve your technical skills through manuals, training videos, and familiarization with the equipment you are given for testing. This will allow you to increase the average price per service significantly.
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Work things out with your neighbors. This is an important factor, starting with your own garage. You must be sure that constantly transporting equipment to your home and making noise will not cause unnecessary gossip in the neighborhood or calls to the police.
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Service absolutely all brands if possible. Otherwise, you may get a bad reputation.
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Use only parts from trusted manufacturers. Build a strong and reliable relationship with your supplier, which will also positively impact the cost of spares.
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If something goes wrong and you break the client's equipment or engine, compensate them immediately or repair it at your own expense. Your reputation is more important.
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Think carefully about your marketing strategy. Facebook campaigns can successfully attract attention, but in this business, word of mouth still plays the leading role. When you start to succeed, think about sponsorship, for example. Supporting a local sports team can be a very good solution. Make sure your name is seen.
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Keep a close eye on what is happening in the hybrid and electric motor market. You need to be aware of trends in the small motor industry and be prepared to make the necessary adjustments to your business.
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At some point, you may have to choose between your main job and your new business venture. Think through everything, including your main job's stability and health insurance, and make the right choice.
2025 is a great year to delve deeper into the topic of what is small engine repair. Once again, carefully analyze each point discussed in this article and confidently implement your plan. At UDC Parts, we will ensure you always have high-quality and affordable consumables.
