How To Start A Small Engine Repair Business

Looking to start a small engine repair company? In this article, we’ll cover all the requirements for starting a small engine repair business. So put on your entrepreneurial hat and let’s get on with it.

Why Start a Small Engine Repair Business?

We believe that a small engine repair shop is actually a very profitable business. As we look around our homes, we can comfortably say that people always need someone to repair many of the tools they have at home. So if you are planning to start this type of business, you must remember that small engine repair shops do not need to be built on such a large scale.

Keep in mind that you only need one experienced mechanic to start such a venture, and you can establish yourself as someone who repairs a wide range of engines or as a specialist. You might be surprised to know that a small engine repair shop is a very lucrative business that you can easily start.

To get started, you don’t really need a little engine repair manual and so on to say that people constantly need someone to fix some of their tools. at their home. For example, our lawn mowers are always out of order, our street generators are always intermittent, and we have a water pump that spews more air than actual water.

There are, of course, small Engine Repair Courses you can take if you are not very good at these things, but experienced mechanics are more in demand and are really hard to find. Don’t be discouraged if you are not such a great mechanic, you can at equally hire one or more experienced mechanics to serve you.

It is very important that you understand that there is a wide range of products that you, as an entrepreneur, can pursue – ATV engines, chainsaws, dirt bike engines, tracked vehicle engines, jet ski engines, lawn mowers, leaf blowers, marine engines ( small boats), mini bike engines, motorcycle engines, outdoor generators, portable heaters, pressure washers, snowmobile engines, snow plows, cultivators, trimmers, water pumps, and many others.

You may need to do some minor repairs, but if you can do the housework too, you might even get more clients. This means your mechanic must have access to a wide variety of small engines, engines, makes and models – and most importantly – your mechanic must be prepared for all possible repair scenarios.

The complete guide Of Starting a Small Business Of Repairing Engines

An industry report says there were over 70,000 small engine mechanics, with a forecast that will rise to more than 75,000 by 2020. In Texas alone, a small engine refurbisher, which numbered about 1,620, averaged 31 repairs. 240 dollars. outdoor equipment. It also states that the industry’s annual revenue is $ 7 billion, while growth was recorded at 4.1%.

The success in the industry stems from improvements in the economy that have resulted in increased customer spending. Industry revenues rose between 2011 and 2016 as consumer confidence increased due to increased disposable income and allowed households to increase their spending on goods such as lawn and gardening tools, as well as on their repairs.

Experts believe the industry will look better over the next five years, especially as consumer confidence will rise from increased disposable income, which will be good news for industry operators.

It is important to state that the industry has a low concentration, is highly fragmented and there are few or no companies controlling a huge market share, especially since enterprises are concentrated exclusively in the regions where they are located and seem to have a higher share in their regions. than outside.

Research has shown that the industry is booming for business because most American households have one or two energy equipment that they use, especially when it comes to lawn mowing. snow must be shoveled and other actions must be performed regardless of the economy.

Start of maintenance and market research for small engine repair

Demography and Psychography : 

The demographic and psychographic makeup of people who need the services of a small engine mechanic are so huge that no one knows where to start classifying them. The advent of technology has made the use of household equipment and small motor machines very common in our society. Many of our daily activities are centered around these small machines.

We all know that almost every family in the United States owns at least one piece of equipment such as a lawn mower, water pump and all other types of pumps, garden cultivators, chainsaws, portable heaters, outdoor generators, camping carts, snowmobiles, forklifts. , ATVs, motorcycles, pressure washers, marine engines, motor skis, refrigerated trailers on refrigerated trucks and other such equipment that can be naughty from time to time, and then a specialist will be needed to inspect and repair it.

List of Niche Ideas in Small Business Engine Repair

There are people who will try to do their own engine repairs (often with limited success). But most will look for a local lawn and garden dealer who does renovations, or a local guy who runs a small engine repair business from his garage or basement. We find that customers who tend to patronize these types of businesses are generally looking for the least costly repair, which is often a fix rather than a complete overhaul.

This brings us to the point where the best opportunities to find are where the money is. As the cost of a machine that is powered by a small engine increases, so does the likelihood that the owner will spend money on engine repairs if the engine fails or a major problem occurs.

The engine in a lawn and in a garden tractor, snowmobile, ATV, motorcycle or personal watercraft is usually worth repairing because the cost of running the engine is much less than what it would cost to replace the engine. A new ATV or motorcycle can cost thousands of dollars versus hundreds of dollars to repair or rebuild the original engine. In this business, note that you can be a general repair technician or you can choose a specialist and focus on a specific industry. Niches in this industry can include:

  • Powersports Industry
  • Industrial and agricultural market
  • TV repair
  • Phone repair
  • Repair of small motors at home

The level of competition in the small repair business

In this business, you compete with backyard DIYers, local PowerSport and Watercraft dealers, small engine repair shops, and remanufactured engines from a variety of sources (both local and online). Many of your local competitors are really nothing more than parts or engines. 

They may disassemble engines and replace worn or damaged parts with new ones, or replace the original engine with an engine that was obtained from other sources. Please note that many mechanics are unable to repair parts of your car because they do not have the equipment to do the job.

Indeed, they can manually hone the cylinder or drill, sharpen the valve seats, but that’s about This. They can’t carry the cylinder to enlarge. 

We believe that they cannot precisely sharpen or sharpen the cylinder bore on a plateau. They cannot handle multi-angle valves or handle a head to accept oversized valves and seats.

They cannot re-process or repair a damaged engine shroud or repair a worn connecting rod or crankshaft. They cannot balance the engine. 

They probably lack adequate equipment for crack detection or repair. This is why we believe there is ample opportunity for a full service machine shop that can do it all, either for other small engine repair companies or for the engine owners themselves.

Well List- Notable Small Engine Repair Businesses

We cannot deny that people are constantly in need of service from small engine repairmen. We believe that these small motors are constantly in use and develop one malfunction or the other in the process. As a self-motivated entrepreneur, you can start making money as a minor repairman simply by learning a profession. Many small engine repair technicians charge between $ 250 and $ 500 to repair a small engine depending on the engine malfunction.

All you need is determination and dedication to work hard. For you to be able to effectively offer engine repair services, you need to open a store where people can bring their little engines and pick them up after repairs. Also note that you can make money by focusing on repairing damaged small motors.

Some of the machines that fall into the small engine category include; Cart Motors, Water Pump, Mini Bikes, Lawn Mowers, Gas Trimmers, Outboard Motors, Portable Heaters, Leaf Blowers, Chainsaw and many more. However, note that no major company dominates the industry.

Economic analysis

In this industry, mechanized entrepreneurs have the opportunity to make fantastic full or part-time jobs repairing outdoor power equipment and small motors, right from a fully equipped home workshop or from a small commercial store.

Note that even if you don’t have previous small engine repair experience, there are numerous schools offering in-class and distance learning small engine repair. If you don’t look too far, the list of equipment you can fix is nearly limitless: lawn mowers, outboard motors, gas trimmers, lawn tractors, snowmobiles, snowblowers, leaf blowers, and chainsaws are just the tip of the iceberg.

Also note that there are additional sources of income. First of all, you need to create a certified warranty repair warehouse for manufacturers of power outdoor equipment. Whereas the second is to buy used outdoor power equipment in need of repair at very low prices, fix it and sell it profitably straight from your store.

Plus, a third additional source of income is renting outdoor power equipment and tools for local homeowners and contractors. Combine it all with the renovation side of the business and you can easily generate over $ 100,000 per year in sales.

Start your small home improvement business from scratch or buy a franchise

It is believed that many inexperienced small entrepreneurs rebuilding engines turn to owners with the mistaken idea that starting from scratch is their only option when they can also get a business franchise. Unless you have a compelling reason to start from scratch, buying an existing small engine rebuild business may be your best bet.

The acquired small engine repair business is a well-known enterprise; starting from scratch is less accurate because his forecast depends on the expected results. At best, you can find a turnkey operation with proven profitability and a well-tuned business model.

We believe that your chances of achieving your entrepreneurial goal of becoming a successful business owner will improve immediately. when you join the ranks of a franchisee rather than go alone. Keep in mind that if your goal is to start a small engine repair, you should evaluate if there are good franchise opportunities that can make your life a lot easier.

Potential problems and threats of starting a small business to repair engines

No matter how you look at it, no business idea looks simple; it takes courage and competence to survive. Every business has its own challenges, but what makes you a great entrepreneur is your ability to survive and build your business. Possible threats to starting this business could include:

  • Deciding whether to be a specialist or a general repairman
  • Capital and financing of your business
  • Client search
  • Eliminate the stress of not checking for fixed pay
  • Managing your money, legal protection and taxes
  • Dealing with negative people, loneliness and self-doubt
  • Reputation building
  • Fighting competition
  • Hiring employees

The Beginning of the Legal Aspect of the Small Repair Business

Best Legal Entity for Small Business Engine Repair

There are four legal structures in the business world : a sole proprietorship, partnership, limited liability company (LLC) or corporation. Every legal entity in the business world has advantages and disadvantages, but you need to carefully consider your options before choosing a legal entity.

When starting a small engine repair business, LLC is your best legal entity. , LLC is a tax organization that transits. It simply means that the LLC itself does not pay tax, you pay tax on the profits you receive. The trick to lowering your tax liability has two parts: starting an LLC, but taxing it like an S-Corporation.

Then you pay yourself a small but reasonable monthly salary, and once a quarter you can borrow a portion. profits as distribution. Note that you will pay standard tax on your monthly salary, but S-Corporation’s quarterly distribution does not count as employee salary, so you do not have to pay Social Security or Medicare tax on that amount.

Catchy Business Name Ideas for Small Business Engine Repair

  1. Engine preliminary overhaul
  2. Affordable repair
  3. Stopping the engine
  4. Soft repair
  5. Red Ridge
  6. Cascade machines
  7. Forefront engine
  8. Colonial Auto Center
  9. Every day Repair
  10. Machine specialists
  11. GIC engine room
  12. One time touch
  13. Integrity First renovation
  14. New Town Automotive
  15. Eastwood Service
  16. Clean Imports
  17. Professional engine services
  18. RC Automotive
  19. Cool Pro engine Service
  20. Skyline repair
  21. The craig shop
  22. Kathy motors
  23. Suburban engine room
  24. Engine Doc

Insurance policies

You must be aware of the enormous risk involved in this business; just one mistake in your work and you can completely screw up your client engine – and this can quickly turn into a lawsuit against your business. In addition, if the machines are further damaged during your treatment, you may also be responsible for these costs.

Thus, insurance is essential in this business, to protect your business from high liability lawsuits, property damage and cyber risks, you need a business protection plan that takes into account the nuances of your day-to-day activities.

  • General liability insurance
  • Insurance against mistakes and omissions
  • Business Owner Policies
  • Bailees insurance
  • Workers’ compensation insurance
  • Workmans Comp Usage Example
  • Employers liability insurance
  • Fidelity bonds
  • Employment practice liability insurance
  • EPLI policy

Intellectual property protection

Many reports say that intellectual property theft is committed by half of all employees and competitors. Many refurbishers regularly migrate company data to the cloud via personal emails and to their flash drives as part of their day-to-day tasks, and then they never delete the data from their systems.

More importantly, most workers, despite their nondisclosure agreements, believe that creative work performed on behalf of their employers remains their property. Note that intellectual property protection is essential in small engine repair businesses in the form of patent protection. trademark and copyright protection, technical data and small engine software protection.

To avoid losing your hard work and time, you must implement and strengthen non-disclosure agreements, use forensic techniques to monitor your network, maintain privacy and security with keywords, and develop strong relationships with a digital forensic expert.

We also recommend that you avoid redistributing equipment or information without creating a forensic copy, discarding forensic imaging for at least six months, not permitting your employees to use personal flash drives, never underestimate the determination of a thief, and always try to do something yourself.

Is Professional Certification Required to Run a Small Engine Repair Business?

Small engines for motorcycles, ATVs, chainsaws, lawns, etc. Wers, weed eaters and outboard motors, and if they fail, they must be checked, serviced and repaired. Since many people own these types of machines, there is a constant demand for technicians with little skill in repairing engines.

Small motors are now very advanced and require a lot of technical knowledge to operate. When you receive a Small Engine Repair Certificate, you will be qualified to work on all types of small engines. These certification programs may include:

  • Associate Specialist in Applied Sciences in Shipbuilding and Small Engines
  • Associate Specialist in Applied Sciences in Power Engineering and Small Engine Repair
  • Technical Department Repair Certificate for Marine and Small Engines
  • Small Engine Repair Certification
  • Small Engine Technician Certification
  • Certified 4-Stroke Engine Technician

Legal Documents Needed for Small Business Engine Repair

Knowing and obtaining the required licenses and permits required for your small engine repair business can be very stressful. Any of the paperwork requires your time, energy and paperwork in order for you to receive proper registration.

But no matter how stressful it is, don’t risk shutting down your business before it fully kicks off. Running your business without proper licensing is a criminal offense in some states, while others carry hefty fines. Here are some of the legal documents required for a small business to repair engines.

  • Business License
  • Insurance
  • VAT registration
  • Contract of Employment
  • Federal Tax Identification Number

Small Business Financing for Engine Repair

Not only this business, but every business needs a fund to be able to stand firm and grow. There is a popular saying that money is used to make money, any business that lacks funds is literally dead and does not exist. We believe that one of the huge problems entrepreneurs face is not choosing a niche for a business, but capital and financing. for business.

Please note that you need a fund to start small engine repairs, buy tools. Rent an office, pay utility bills, pay employees, and create a corporate identity. Here are the ways to raise funds for a business fund:

  • Personal savings
  • Loans from friends and family
  • Small business loan
  • Partnership
  • Attracting investors
  • Crowdfunding
  • Bank overdrafts
  • Community schemas

Choosing the Right Location for Your Small Engine Rebuilder

Choosing a location for your small engine repair business should be one of your most important decisions when starting a business. This is because the location you choose for your small engine repair business directly affects your operating costs and your ability to serve customers. In addition, whereabouts decisions are made are difficult and costly to reverse.

Keep in mind that a great place for your small engine repair business should be on a busy street where many people will see the store. who can easily interfere and patronize your services. As such, you should consider if your location can benefit your business and if you are close to similar companies that are already attracting the type of customer you want, for example starting your repair shop next to a store that sells small accessories for engines.

It is also very important that you choose a location where you can easily afford to rent it. Also keep in mind that the location you choose must be legally acceptable for whatever you plan to do there. There is a possibility that the location will be good for business, but if it is not zoned for what you plan to do, then you are asking for trouble.

We advise you never to sign a lease without being sure that you will be allowed to conduct your business in that space. Note that your city planning or zoning department will determine what activities are permitted in a given location.

Start of work on the repair of small engines. Technical and personnel requirements

One of the obvious differences between assembling automotive engines and small engines is the smaller physical size of the components. The equipment you currently have for finishing and fixing the cylinder head and bore may be too large or unsuitable for use on small engines.

Many small motors also require special tools for disassembly and assembly. Special tools may also be required for regulator adjustments, valve adjustments, or other tasks. Special tools that may be required for small engine work may include any of the following:

  • Specialized tools for valve operation, including a small spring loaded valve compressor, valve seat puller, valve guide puller / actuator, valve seat cutters (different sizes), small valve guide reamers (different sizes), and valve guide adjustment tools.
  • Dedicated camshaft tools, including camshaft bearing yoke gauges (various sizes) to check wear and clearance, camshaft bearing puller, camshaft bearing drive, small flywheel puller and flywheel holder, and magnetic bearing puller / installer.
  • Special tools for working with motor bearings, such as main bearing drives and reamers (various sizes), roller pin drives, main bearing plunger gauges (various sizes), and stuffing box drive (various sizes).
  • Special tools for pistons and rings of small engines, such as a ring compressor and expander that can handle small pistons and rings, a piston pin for removing and installing wrist fingers and a dial indicator hole that will fit inside small cylinders.
  • Other specialty tools that you may find necessary or convenient may include a regulator spring adjustment gauge (such as the one recommended for adjusting the secondary regulator spring on Briggs Stratton). 
  • V-Twin Vanguard engines and M29, M30, M35, M38 engines for use in generators), as well as some types of mechanical or electronic tachometers for checking / adjusting engine speed settings.
In addition, to be successful in this business, you will need access to OEM service information for these engines, including piston, ring and bearing clearances, valve characteristics, torque values, and similar data. We believe service manuals are available from engine manufacturers and other sources, and typically sell for $ 30 to $ 40 per manual.
But the problem is that you will probably need a lot of different manuals because most small engine manufacturers have a wide variety of engines. In addition, the VIN or identification plate, tag or sticker on a small engine contains key information about the engine model, specifications and date of manufacture.
Please note that such parts are required to correctly identify the motor application and to obtain the correct parts and service information. Remember that this identification plate, tag or plate is often located on or under the engine cover of small air-cooled engines, or elsewhere on the cylinder block or cylinder head.
If the tag or cover is missing, this can make the identification process very difficult. Please note that accurate engine identification is important not only for spare parts, but also for ignition parts such as spark plugs (which must have the correct heating range and must match the correct clearances for the engine to function properly).

Service Process Associated with Small Business Engine Repair

Indeed, small engines can be found all over the place. They power lawn mowers, garden cultivators, portable generators, all kinds of pumps, carts, ATVs, snowmobiles, motorcycles, forklifts and even refrigerated trailers on refrigerated trucks. Most of these engines are air-cooled, single-cylinder, four-stroke engines ranging from 5 to 15 hp. or more. Many have vertical crankshafts and some have horizontal crankshafts.

There are also V-shaped, three-cylinder and four-cylinder small displacement engines, some of which are capable of producing up to 75 hp. or more. Many are four-stroke, some are two-stroke, and some run on diesel, propane or natural gas. In this business, your daily activities will focus on the following:

  • Attend seminars and participate in webinars to stay at the cutting edge of new technologies
  • Testing small engines with diagnostic tools. to determine which parts need to be replaced
  • Engine replacement and testing
  • Visiting your clients
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