If you’re looking to start your own business and you have a background with cars, an auto body shop could be a good choice. There’s plenty of money to be made in labor costs, and there’s always work in that area since people will always be crashing their cars. However, you don’t want to rush into anything, especially a business with such high startup costs. Here are a few key tips on what you should do to get your auto body operation started.

Go over the Finances

The first thing to consider with an auto body shop is your budget, as it can be an expensive business, especially in the early going. You need to either rent or buy a shop, and repair equipment definitely isn’t cheap. Depending on where you’re located and what type of equipment you want, startup costs could be over $100,000.

You may be able to spend a bit less and have a built-in customer base by purchasing an existing auto body shop. Just make sure you carefully inspect everything first, because you don’t want to pay top dollar for a shop with old or subpar equipment.

Select a Great Location

The phrase “location, location, location” could have been created with auto body shops in mind. Whether you’re going to purchase an existing shop or set up an entirely new one, it’s important that your shop is in a high-traffic area that will be convenient for customers to reach.

When a customer has a damaged car that needs to be repaired, one key factor they’ll use to narrow down their auto body shop options is distance. No one wants to drive 30 minutes just to get their car fixed. Your shop needs to be where the action is and it needs to be easily accessible.

Get Equipment to Fit Your Needs

As previously mentioned, equipment will be one of the major expenses you have when starting your shop. Even though it’s tempting to try to keep costs down here, make sure you get the equipment your shop needs to be successful. If you’re planning to work on new luxury vehicles, you won’t have much luck with only barebones equipment.

Buying used equipment is one way you can save money here, but do a thorough inspection first to verify that the equipment is still in good shape. It does you no good to save money upfront if the equipment breaks down and you need to replace it anyway. Remember that the money you put into your equipment is an investment in your shop.

Start Spreading the Word

Once you’ve got your location, your equipment and your mechanics, you can start marketing your shop to bring in customers. Digital marketing will be your most effective option here, as more and more people use the internet any time they need something.

Make sure your shop has a website—even something simple will work. Your best bet to bring in new customers is to run pay-per-click (PPC) ads on search engines and review sites, such as Yelp. When people need an auto body shop, they typically search online and check out review sites. By advertising on both, you’ll be covering all your bases.

It takes time to set up your auto body shop and get a steady stream of customers. The good news is that once you do, you’ll start building up referral traffic through positive word of mouth, and your shop will develop a solid reputation as satisfied customers leave reviews online. Take the time to learn from successful auto body shops in Provo or whatever area you’re in while you’re planning your business. Following the example of successful businesses will help you as you get yourself started.