How to Start a $500K/Year Auto Repair Shop (2024)


November 17, 2022

How to Start a $500K/Year Auto Repair Shop (2024)

Are you great with cars but have no idea how to open a mechanic shop? Don’t worry! We’re going to show you how to open a mechanic shop.

Lucky Sing started his car repair business, Lucky’s Auto Repair, with $20,000 in 2016 and earns twice that every month. He shared business advice, technology costs, unique marketing strategies he uses, and how to delight your customers.

Get ready to learn how to start a mechanic shop.

Develop Repair Shop Knowledge

Before you start an auto repair shop, you’ll want to learn about the mechanic shop business. You’ll need to develop both industry knowledge and technical skills. We’ll look at each of them to help you prepare to open your own auto repair business.

Industry Information

You’ll want to understand how auto repair shop owners operate, what types of challenges they face, and the financial considerations that go into running an automotive repair shop. We use IBIS World for our data on industries because it provides all the information you need for competitor analysis in one place. You can find auto mechanics under the report for NAICS code 81111.

Major Players

Automobile repair shops have a lot of competition. They have seven major competitors that operate in their field.

  1. TravelCenters of America 
  2. Monro 
  3. TBC Corporation
  4. Love’s Travel Stops & Country Stores, Inc.
  5. Meineke Car Care Centers, LLC
  6. The Boyd Group Inc.
  7. NationaLease

In addition, they may also compete with:

  • New car dealerships
  • Oil changes services
  • Used car dealerships
  • Automotive part supply shops

These major players account for over 7% of the market share and $5.6 billion of the $78.4 billion industry revenue and $417.7 million out of the $4.9 billion revenue. The highest profit margins for the companies are approximately 7.7%. 

The rest of the revenue and profits are shared by approximately 278,000 businesses.

Automobile Repair Shop Revenue

The average auto repair shop makes $261,870.50 per year, while the revenue per employee tends to be between $115K and $132K per employee. Assuming you start by yourself, you might make about $10,000 per month. Check out the breakdown of what services generate the most revenue:

Screenshot of IBISWorld website

You should also be aware that businesses and consumers under 45 years old generate the most revenue.

Lucky Sing told us he was on track to make over $500,000 with three employees in 2022. That means he was making around $125,000 per employee (including himself).

Operating Expenses

The operating expenses for auto repair businesses break down into the following:

  • Other Costs: 46.7% (includes taxes, IT, professional services, repairs, and miscellaneous). Based on my reading of the entire report, it appears that parts are the majority of this. You should expect parts to be $1 out of every $3 earned on parts, but if you can reduce this to $1 in every $4, it will increase profits to triple the market average. That’s why an auto repair shop needs to call multiple vendors for the best price.
  • Wages: 28.1% (Lucky says more like $40K per mechanic)
  • Purchases: 9.5% equipment and tools
  • Rent: 4.7%
  • Marketing: 1.9%
  • Depreciation: 1.6%
  • Utilities: 1.2%

Industry expenses breakdown pie chart

That is how car repair shops make 6.3% after tax profit.

Profit Margins 

Profit margins for automobile businesses tend to be around 6.3%, but excluding the seven major players decreases to 6.16%. That means you are looking at $6,160 for every $100K in revenue. That’s consistent with what Lucky told us:

(My profits are) around 10%. We could pull higher, but we are investing a lot in the business.

Check out our interview with Lucky below:

He collects a salary now, but he didn’t for the first few years. He told us

Profits started coming in during years three and four. I live on the property, so I Iived under my means.

He also told us he aims for no profits because:

I was taught by an accountant that you want to get as close to zero profit as possible to avoid taxes.

Obviously independent shops can beat the industry average profit margin. Later, we’ll share some of the strategies Lucky uses to get his high profit margins. Next, we’ll discuss what he does with the profits from his automotive repair shop.

What do you do with profits?

Man working in an auto mechanic shop

When we asked what mechanic shops do with business profits, Lucky told us:

Reinvest in (the) business and hiking and camping.

He also told us that his auto repair shop’s busiest months are June, July, and August, and the winters are slower. He warned that there were years he had to pay for payroll out of savings:

I had to pull out of my slush fund for payroll during some years.

So don’t spend it all on a fat bonus after you pay quarterly taxes.

Educate Yourself

There are three ways to educate yourself on how to repair cars and provide maintenance services:

  1. Teach yourself to repair cars with YouTube videos.
  2. Attend technical school.
  3. Get a job at an auto mechanic shop.

No matter which you choose, Lucky emphasized the importance of getting your hands in the vehicle and learning to do it firsthand.

YouTube Videos About Cars

Screenshot of 1A Auto from YouTube website

There are a ton of tutorials about engine repair, transmission repairs, auto-body repair, and anything else you could possibly want to know before opening a mechanic shop. There are more than 19,000 videos created by the top five channels when I search auto repairs on YouTube. I’m particularly impressed with 1A Auto’s playlists grouped by type of car.

Lucky told us:

Just keep pushing your boundaries. There are so many tutorials.

Technical School

Lucky had a lot to say about going to a tech school. He went to one and told us:

Going to the tech school really honed my fundamentals with electrical fundamentals.

He emphasized that he developed car repair and maintenance skills that would have been much more difficult to learn if you took the do-it-yourself shop approach.

I would push school quite a bit. You can do it without school, but you won’t get the knowledge of the more sophisticated tech.

His repair shop even invests in ongoing education for his mechanics. He told us:

We’re constantly going to classes…We go to out-of-town shops and train our auto mechanics on new tech and customer service.

He even recommended a company he suggests mechanic shop owners use:

There’s a company called Elite Worldwide that we use.

If the investment in education doesn’t sound like the route for you, you can consider developing experience as an employee of an auto body shop, becoming an oil change mechanic, or finding a tire place to start developing experience. It will get your foot in the door, but it’s quicker if you go to technical school to learn more about the auto mechanic business.

Get a Job as a Mechanic

Screenshot of auto mechanic job from Indeed website

Small businesses across the country are suffering from an employment shortage. In fact, there are nearly 285,000 automotive jobs available on Indeed. You just have to reach out to auto mechanic shops and find one that will let you start. You are sure to find one looking for local car mechanics.

Do you need a mechanic license to open a shop?

You’ll need to get state and local business licenses. Still, if you’re wondering about a specific certification that states you know about car repair, most states don’t require that to start a small mechanic shop. Next has an article with state-by-state shop mechanic and repair shop certifications required for licensing.

You might want to consider some of the certifications for your mechanic garage because they certify that you know how to perform repairs. Car repair certifications are normally through three agencies:

  • Automotive Service Excellence Certification (ASE): The ASE offers 58 Certifications for techs. They also offer a Blue Seal certification for shops with at least 75% ASE-certified techs and at least one ASE technician for each service. This gives you a high-quality backlink to your website, marketing materials, and more.
  • I-Car Gold Class Certification: Shop owners might want to consider I-Car Gold certification if their car repair shop wants to be an automobile repair center. The certifications are a multi-year process that requires the majority of employees to be trained in specific vehicle repair shop knowledge.
  • AAA Approved Auto Repair Facility: Triple A has really high requirements to become a certified repair shop for cars. You’ll need ASE certified technicians, a high Better Business Bureau rating, a 94% customer satisfaction rating based on a survey of mechanic garage clients, and more. Given each AAA site is different by region, this link or this one by region might be more direct. I got my information from RepairesHub.

Next, let’s look at planning a new business.

Business Plan for an Auto Repair Shop

You’ll have lots to keep track of, so it helps to write an auto repair shop business plan. The business plan helps you organize your thoughts and present them clearly and convincingly. The document shows:

  1. Services Offered
  2. Business Structure and Licensing Needed
  3. Startup Costs
  4. Ongoing Expenses
  5. Pricing Strategy
  6. Location
  7. Marketing

The business plan should guide you to success in the future and help you keep track of everything you have to accomplish. Check out our business plan template to help you write a more formal business plan.

What services will you offer?

mechanic guy working on a car brakes

Small business owners have a variety of services they can offer when they open their own car repair shop. Some of the auto repair services to consider offering potential customers include:

  • Routine Maintenance: Every new car has a maintenance schedule, which is 31% of revenue for the industry.
  • Powertrain Repair: These focus on engines, transmission, axles, and wheels. They generate 18.1% of industry revenues. Lucky told us these are the highest profit margins. 
  • Brake Repair: Brakes must be replaced every 10K to 20K miles and rotors every 70kK. 17.4% of industry revenue is from brake work.
  • Alignment Repair: Alignments focus on parts like wheels and axles that help the vehicle drive in a straight line. Makes up 8.1% of industry revenue.
  • Electrical Repairs: Electric work focuses on the electrical system like alarm equipment at 6.4%. 
  • Heating/AC Repairs: This work involves components that keep the car warm or cold, and 4.9% of revenue comes from these services.
  • Muffler and Exhaust Repairs: These services repair parts regarding the emissions system. These may also include government required inspections. Without these parts, a car will be polluting the environment more than necessary. These repairs are 3.5% of industry revenue.
  • Other Services: If it doesn’t fit neatly in one of the other categories, the service is thrown in here. It makes up 10.6% of revenue industry wide.

Lucky told us:

The highest margins are on the biggest jobs like engine swaps.

Some other options for a car repair shop include:

  • Mobile Mechanic Business: Go to people’s sites and fix their cars.
  • Mechanic Workshop: This term is normally a synonym for a repair shop, but you could also turn it into a classroom environment or space where D-I-Y mechanics can go to work on their cars.
  • Parts Supply: Sell automotive parts to other shops and D-I-Yers.
  • Collision Repair: Specifically focus on fixing cars that were in wrecks.

How Much Does It Cost to Open a Mechanic Shop?

Automotive shop with tools and equipment

You’ll need to invest some money in purchasing equipment and business licenses to start a car shop. Lucky has an interesting story about how he started his business:

Got my lifelong goal of owning a Skyline GTR. I got the car, drove a few years. Something was lacking in my life, I wanted to start a business, and I kept thinking about how to get the funding. I kept coming to selling the car, and finally decided to do it.

While the way he started his business with a unique source of funding, he estimated the cost to start today would be:

$20K, but I’m also on my own property. Probably twice that because of inflation.

He also told us:

Having good credit is huge.

Let’s look at the startup costs.

Breakdown of Startup Costs

You’ll need to invest in the following items before starting an auto repair shop:

  • Limited Liability Company (LLC) or Corporation: $1,000 or less in most states. Both an LLC and a Corporation separate personal assets from business assets as long as you have a business bank account. Check out our blog about business structures to learn more.
  • Business Licenses: $200 to $3,000. You’ll have to check with your state, county, and city governments for exact pricing and licensing requirements. Learn how to get a business license.
  • General Liability Insurance: $500 to $3,000 per year. Alternatively, you can choose the next option:
  • Business Owner Policy: $500 to $3,000 per year. Combines general liability and commercial property insurance. Make sure to purchase insurance. Check out Simply Business for easy to purchase plans.
  • Workers Compensation: $500 to $4,000 per year, median $1,667. 
  • Commercial Auto Insurance: Median cost $778 per year. (All insurance pricing is based on this Insureon blog.)
  • Specialty Tools: Rates vary, but you can rent many tools from Autozone until you can afford to buy them.
  • Diagnostic Tools: $25 to $10K+. Used to test the vehicles to see what codes and issues they are having. It can also be used for tuning. High end or Affordable options are available. Obviously the high end ones have more features and precision.
  • Professional Lift: $5,000 to $40,000 depending on height and weight requirements.
  • Parts budget: Rates vary, and new parts can cost from $15 for brake pads to $20,000+ for some engines. 
  • Shop: $1,750+ a month for rent and utilities.
  • Total: $10,753 to $100K+ for all items as shown here.
  • How to start a mechanic shop at home

Some states may allow you to start auto repair shops from home, but you’ll need to check state and city rules in your area. More often than not, apartment complexes have specific rules against it, as do many homeowners associations.

You can cut the cost down to probably $5K for those wondering how to start a mechanic shop from home.

What permits do I need to open a mechanic shop?

Auto mechanic shop permit

You’ll want to consider the permits for starting an auto repair shop, too. You’ll want to get the following:

Sales Tax Permit: A permit is required to pay taxes when you sell goods (and sometimes services. Some states do not tax services). 

Resale Permit: A resale permit allows you to exclude taxes from your purchase price. Alternatively some states don’t make you pay tax if you paid the sales tax on the goods, but talk to an accountant to make sure.

Hazardous Waste Permit: You may be required to get a hazardous waste permit or pay a fee for disposal. Even if you aren’t, you may need to keep documentation. Here is a 50 state guide to laws for mechanic shops.

State and Local Business Licenses: There may be different requirements for different types of automotive businesses. Check with the local Small Business Administration (SBA) to find out what you need. You can find a list of SBA offices on the website.

Get a Business Bank Account

Get a business bank account to protect your business idea and personal assets, and get a bank loan. To raise money through loans or stock shares, you have to keep your personal finances and business finances separate. The best bank accounts to get will vary for each business, but small banks and credit unions tend to have better approval odds and customer service for business loans. As a business owner, it’s also important to consider their personal relationship with you.

Learn how to open a business bank account.

Get Accounts with Suppliers

Screenshot of Advantage Parts Solution website

Every vehicle that you repair will need parts, and you’ll often have to get them from local suppliers or dealerships. If there are none locally, you may have to order them from online retailers or larger wholesalers. Some of the larger scale parts shops that mechanic shops use include:

Wikipedia has a list of 40 other potential suppliers. Like any industry, it’s a good idea to get bids from at least three places to get the best value.

Choose an Auto Repair Business Location

Lucky's Auto Shop location

Automotive repair shops will normally need a location to repair cars. Before you start a mechanic shop consider:

  1. What is to be the amount of traffic around your car repair shop?
  2. Is there enough parking to handle existing and new customers?
  3. Does the car repair shop have enough space for the number of car ports you need? There are typically one to eight car ports in small businesses, but you may need drastically larger numbers if your automotive business contracts with:
    1. A local taxi company
    2. The police department
    3. A limousine service
    4. Car dealerships (which sometime have 24 to 36 of their own)
  4. The price of the space matters. Industrial and lower traffic areas tend to have lower rent.

Lucky told us:

These days it’s not as important. With the internet, you can choose locations with less traffic as long as you provide great quality. If you are going for a big business, you should choose higher traffic areas.

He also told us that he is looking for a new space. He told us:

The next location we choose will be a lot more space than we need so we don’t outgrow it.

Once you have the space, you’ll need to prepare your new business for the grand opening.

How to Open Your Own Car Repair Shop

In this section, we’ll discuss setting up your software, tools, and marketing, so that you’re prepared to start serving new customers

How to Open Mechanic Shop: Software Used 

You’ll need software to manage your own auto repair shop. Fortunately, Lucky gave us input on what he uses in his car workshop. He suggested the following software to start auto repair shop operations.

Website

Screenshot of Lucky's Autoshop website

You’ll need a website with relevant pictures, your address, services, phone numbers, and appointment requests. Lucky told us:

With auto repairs, you can’t let customers book their own appointment because they don’t know how long it will take. So we have our customer manager Rich approve it or contact them.

You can use a free website builder like WordPress or Wix, but make sure you buy a custom domain so that everything isn’t branded with the website builders logos, which looks unprofessional.

The following is a list of software running on https://luckyautoshop.com/:

  • OWL Carousel: For pictures
  • Google Tag Manager: For tracking what occurs on the site
  • Tawk.to: Customer support agents for $1 per hour
  • Google Analytics UA: Web Tracking
  • CloudFlare CDN: Provides fast access to content
  • CDN JS: Provides fast access to content

I’ve left off coding tools because you’ll find standard ones on most sites. If you love a specific site, check out WhatRuns to find out what they use.

In addition to the website, Lucky Auto Shop uses additional software for customer support.

Mitchell1

Mitchell1 offers four main products:

  1. ProDemand® Optimized with SureTrack®: Diagnostic machine software helps diagnose cars including top 10 issues by vehicle, partners needed, and wiring diagrams.
  2. Manager™ SE: Custom Relationship Management software helps keep track of existing customers spending and prior work, pre-diagnosing the type of repairs needed to help technicians diagnose the vehicle, and manage invoicing and parts.
  3. TruckSeries: This is used for Medium and Heavy Duty Trucks. If your shop specializes in Class 4 to 8 trucks, you’ll need this to help reduce repair time and increase revenue.
  4. SocialCRM: Use this to manage the social aspect of running your own business. This includes customer reviews, preventive maintenance reminders, promotions, and other marketing automations.

Based on the interview, it appears that Lucky utilizes the manager SE and ProDemand®. He said:

It will show the VIN, your personal information, and the repairs performed.

He also told us that Quickbooks was what he used until he could afford more sophisticated software.

Screenshot of Quickbooks website

He also use a program that helps tune up shops show repairs needed.

Bolt On Technology

Lucky uses software called Bolt On that helps with digital inspections that he connects to the estimates. They use Bolt On software to include images in the invoices. It helps auto repair shops increase ticket revenue by 39%, builds trust, and increases return visits.

Lucky also told us how much he spends on monthly software subscriptions.

We probably spend $1,000. The software is expensive, but it’s worth it.

Let’s talk about tools next.

Arrange Your Space

You’ll want to set up your mechanics workshop where it’s easy to bring a car for repair. In addition, here’s some business advice to help run a high performing shop:

  1. The tools should be convenient, but out of the way where technicians can move around the cars freely.
  2. Have a specific dock for oil changes, battery replacement, and other quick jobs. They shouldn’t have to wait while you are changing out an engine.
  3. Tool boxes should have locks and be locked at the end of the night.
  4. Always have an alarm system in case vandals or robbers break in.
  5. Make customer spaces comfortable. Provide a seating space, reading materials, a TV, a restroom, drinking water, and maybe a vending machine.

Marketing Your Car Repair Shop

Truck with Lucky's Autoshop branding

You’ll need to have a marketing strategy in place to help increase your business. Part of the marketing strategy should include:

  1. Logo
  2. Building signs
  3. Vehicle signs
  4. Company letterhead for invoices and other communication
  5. Brand messaging guidelines
  6. Communication channels
  7. Brand colors and font specification
  8. Marketing analytics 
  9. Branded pens (These are a cheap way for any business to get their name out because people tend to take pens, plus you can get them for less than $1 per pen for less than $500.)

Most mechanic shops only spend about 2% on marketing to find potential customers. You have lots of options with your own business. You can:

  • Use social media
  • Partner with other businesses
  • Pay for leads on Google Local Ads
  • Create videos on how to fix cars
  • Use print ads in local papers and billboards
  • Try Lucky’s method:

(We use) Box trucks parked throughout the city with giant banners. Make sure to get permission to park it…We do business with them (the places they park the trucks).

You can also try Broadly to build your online presence. They sponsored our interview with Lucky. In a year, the service increased Google reviews five- fold and increased revenues 5% based on a user testimonial.

Next, we’ll discuss hiring employees.

How to Open Your Own Mechanic Shop: Employees

Lucky's autoshop employees

A business owner can run a mechanic shop by themselves, but how many customers can they help? Will they be able to make a profit if they do everything in their own shop? 

The average wages for employees at shops is only $37,000 according to IBIS and the revenue per employee is around $128K, so adding an employee would be a net gain of nearly $90K. That’s enough to make the difference between a profitable business and one that loses money.

Lucky has three employees and told us:

Starting pay is normally $40,000 but is going up because of inflation. We pay hourly plus a bonus system. There are a lot of companies that pay by the job. I don’t like them because the quality of work suffers.

Lucky also explained that he doesn’t have a formal training program because all his employees have experience, but he trains them as needed and invests a lot in ongoing education.

We train them on new tools.

Now that you’re ready to start serving customers, we’ll walk you through the process.

Mechanic Garage Customer Service

Mechanic working on a computer

An auto repair shop will have a process similar to the one below:

  1. Customer is added to the system
  2. Complimentary inspection (body, wheels, suspension)
  3. Get quotes for parts from vendors
  4. Provide an estimate
  5. Get approval
  6. Buy parts
  7. Put the vehicle on the lift
  8. Perform the work
  9. Accept payment and ask for reviews

Lucky added information about their CRM and how they prioritize customers who are waiting at the shop over those who leave while the car repairing takes place. He told us to always prioritize those who are at the business waiting.

We mark cars that are waiting with a red flashing box because we care about your time.

How to Start a Mechanic Shop: The Keys to Success

Lucky's Autoshop grand opening parade

When we asked Lucky what he attributes his success to, he responded with:

  1. Hiring the right people
  2. Customer service
  3. Asking for reviews

Lucky emphasized you want to look for people who care about the business. They have to have the necessary skills, but it’s easier to teach someone technical skills than it is to teach them to care. This is what he said.

Hiring the right people. You have to find people who don’t just view it as a paycheck.

You can have the right technology, but if you don’t have people who can use it, the business will fail.

He also talked about the importance of including your team. 

Go with the flow. Sometimes your team has better ideas than you. Incorporate your team in everything you do.

He also explained that customer service was hard at first. When he was less experienced, he would get upset when he had to pay for a misdiagnosis. Over time, he learned that giving great customer service is more important. He said that:

Sometimes it’s better to put your pride aside and make the customer happy.

Finally, he told us his approach to quality control and customer reviews:

Ask for Reviews at checkout, via text (the next day using an automated system), and randomly contact customers to verify satisfaction.

Pay Your Bills

You’ll have to pay monthly expenses to keep your business operating. You’ll want to make sure to pay:

  • Lease payments
  • Payments on any bank loan for business assets
  • Utilities
  • Business insurance costs
  • Suppliers
  • Payroll taxes
  • State and federal taxes
  • Annual business license and business structure fees

Live Mechanically Ever After…

That’s our journey. Now you know how to start a mechanic shop. Have you opened an automotive repair shop before? If so, how many cars did you repair per day? What mistakes did you make?

For those who haven’t opened an auto repair shop, what do you look for in a mechanic shop?


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[su_youtube url="https://www.youtube.com/watch?v=P-Hl17zsmuo"]

What Does an Embroidery Business Do?

Embroidered apparel is a business with huge earning potential. It’s incredibly easy to get started with only a decent embroidery machine, a few other pieces of equipment, and some basic embroidery skills. Thousands of companies all over the world are looking to beef up their brand awareness. They can do just that with logos that you emblazon on caps, sweatshirts, face masks, and other apparel. You can also market your embroidery designs to sports teams, schools, clubs, and other organizations and companies. You could choose to embroider T-shirts, although Forest says this is a business with lots of competition. Forest says that jackets, hoodies, and fleeces are more profitable. You can even start related businesses like screen printing and T-shirt printing to maximize your earning potential—just like he did! Alternatively, consider opening a boutique to work with clothing without being involved in manufacturing.

15 Steps to Your Own Custom Embroidery Business

Here are the precise steps you’ll need to follow to start your own machine embroidery business:

Step 1: Differentiate Yourself from Your Competitors

Forest has found unique ways to make his machine embroidery business stand head and shoulders above all the other embroidery businesses that are his competition. Here’s one way he does that: [su_quote]One of the things that sets us apart from other print shops is we rarely let the customer provide the garment. We feel like being able to provide the customer with a contemporary garment—something that's a bit more elevated than if you picked up the phone and called any print shop around town—is a big part of how we stay competitive. And it's also a big part of where our margin comes from.[/su_quote] By only allowing his clients to buy high-quality garments from him, he accomplishes two things:
  • Keeps his profit margins sky-high
  • Makes his embroidery customers deliriously happy
Here’s what else Forest had to say on this topic: [su_quote]Go an inch wide and a mile deep in your niche. Instead of trying to be the cheapest and compete with everyone on price, maybe be the specialist. Try to figure out, 'Hey, what are my competitors doing? What are they good at? How can I work alongside them, but also in my own unique way?[/su_quote]

The Best Way To Differentiate Yourself

Say you want to leave your competition in the proverbial dust. In that case, you need to know their businesses, strategies, and services inside and out. Keep a hyper-focused eye on everything they do so you'll know what their next move is—even before they do! By knowing exactly who it is you're competing against, you'll be able to ensure your offerings are orders of magnitude better than theirs.

Step 2: Learn Everything You Can About the Embroidery Industry

Woman standing behind embroidery machine If you currently know nothing about commercial embroidery, you’re going to need to acquire some knowledge about the embroidery industry. Try to find an experienced embroiderer so he can take you under his wing and teach you what you need to know. You should also read everything you can in books about custom embroidery. YouTube has some fantastic tutorials on commercial embroidery. Join embroidery and custom apparel organizations to get the latest news, trends, and tips for starting your embroidery company. One of the very best organizations to join is the Embroidery Trade Organization (ETA). This association will allow you to take advantage of the market with new training, marketing secrets, and networking opportunities. You can also attend trade shows to schmooze with suppliers and owners of other embroidery businesses so you can pick their brains.

Step 3: Buy Your Commercial Embroidery Equipment

You’re going to need equipment to start your embroidery business. The most critical piece of equipment you’ll need to purchase is an embroidery machine. Choosing the wrong embroidery device can hurt your business, so choose wisely. Another option is buying an existing embroidery business. This saves you the effort of finding a space and purchasing equipment. You can find businesses for sale near you online. With computerized embroidery machines, the artwork for your design is fed into the computer. You see the embroidery design on the computer monitor and can change the design according to your needs. If you want to buy an embroidery machine, check out Sewing Machines Plus. They offer such well-known brands as Janome and Juki. Look for embroidery machines that offer training and support because mastering the software can be difficult. You can begin on a shoestring budget by buying a home embroidery machine or embroidering by hand. When your business takes off, you can invest in a bigger machine. Choosing an embroidery machine depends on the niche you're aiming for.  If you're doing T-shirts, you'll need a machine that can do tubular sewing. If you're thinking of doing embroidered patches, you'll need an entirely different type of machine.

What is the Best Embroidery Machine to Start a Business?

For a home-based business, the best embroidery machine is the Janome Horizon Memory Craft 12000. This is an exceedingly versatile device that not only embroiders but also sews and quilts. It’s super easy to use and is quite efficient, so embroidery projects get completed quickly.

Other Embroidery Equipment and Supplies

Embroidery machines and tables Here are some other things you’ll need to start your own embroidery company:
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  • T-Shirts
  • Polo Shirts
  • Shirts
  • Jackets
  • Sweatshirts
  • Computer
  • Printer
  • Digital Design Software
  • Hooping Boards
  • Specialty Sewing Kits
  • Embroidery Thread
  • Topping Material
  • Backing
  • Bobbins
  • Needles
  • Stock Designs
You can get discount supplies for your embroidery business here.

Step 4: Don’t Take on Too Many Projects

When you start your embroidery business, it's tempting to take on multiple projects. However, this is a recipe for failure. In the beginning, focus on two or three things so you don’t diffuse your efforts. Here’s how Forest puts it: [su_quote]Don't bite off more than you can chew. Pick the right projects to take on. It's really easy to get stars in your eyes when you see something come along that looks like you're going to make money on it because it has a high dollar value tied to it.[/su_quote]

Step 5: Don’t Try to Do Everything Yourself

In the beginning, Forest tried to do everything himself. Forrest working on the laptop Today, he has come to the realization that he should stick to what he's good at. That's the embroidery, screen printing, and graphic designing which has been his bread and butter. One of the things he contracts out is accounting: [su_quote]Get a good bookkeeper. That's really a tough one to kind of figure out. It's kind of a hard pill to swallow the expenses, but it's definitely worth it. It took us ten years to figure that out.[/su_quote] As far as bookkeeping services go, I recommend Bench or Bookkeeper.com.

Step 6: Create An Embroidery Business Plan

A business plan is crucial to the success of your embroidery business. Without one, you’re like a ship adrift at sea. With one, you’ll be able to confidently chart a course from where you are now to right where you want to be with your embroidery company. You’re going to need the following six sections:
  • EXECUTIVE SUMMARY: This is a quick overview of your business. It's one or two pages at the most. Wait and write it last, as it’s a summary of the rest of your plan.
  • OPPORTUNITY: This is the place where you tell the world what you’re selling, what problem you’re solving, who’s your target audience, and who your competition is. In other words, the opportunity your business represents to yourself and investors.
  • EXECUTION: Now comes the exciting part—how are you going to seize the opportunity you just described and transform it into a viable business? You’ll also need to include your marketing and sales plan and the metrics and milestones that will track your success.
  • MANAGEMENT SUMMARY: Use this section to list your current team configuration and who you might need to add to make it complete. If you’re already up and running, provide a quick overview of your legal structure, location, and history.
  • FINANCIAL PLAN: Your business plan isn't finished unless you have an economic forecast.  Here is where you’ll put a cash flow statement, income statement (or profit and loss statement), and your balance sheet.
  • APPENDIX:  If you need space for additional information, you can tuck it in here.
If you need free business plan templates, I would check out the one-page business plan at Fit Small Business. If you need state-specific ones, check out Rocket Lawyer. If you need help crafting a business plan, check out this resource at the SBA. SCORE also has some resources you might want to look at it.

Step 7: Get Your Licenses and Permits

Embroidery business licenses and permits Before you can set up your embroidery shop, you’ll need to make a quick call to the various government offices to find out which licenses or permits you’ll need. Some of these offices are federal, some are state, and some are local. If you're starting an embroidery business, here are the permits or licenses you might need:
  • FICTITIOUS NAME/DBA: A fictitious name (otherwise known as a DBA, or "Doing Business As") is a permit to do business in a locality. This permit is required if your business name is different from your owner’s name.
  • LOCAL BUSINESS LICENSE: Some cities or counties require a business license for new businesses, even if the company is already registered with the state.
  • BUILDING PERMIT: If your business is in a new location or you're renovating an existing one, you'll need a building permit.
  • FIRE INSPECTION CERTIFICATE: A fire safety inspection certificate is issued after an inspection from the fire department to ensure that your building meets stringent fire safety regulations.
  • SELLER’S PERMIT: This is a permit issued by the state letting you sell products or services and collect sales tax.
  • REGISTER AS AN EMPLOYER: States require employers to register with them as employers for state tax purposes. Specifically, you must comply with state tax regulations for unemployment tax and workers' compensation.
You can find out which licenses you’ll need for your embroidery company in your state. For more assistance applying for licenses and permits, check out the SBA website.

Step 8: Get Insurance

You’re going to need small business insurance to protect yourself from risk and financial loss in the event of an unexpected catastrophe with your embroidery company. Small business insurance (or commercial insurance) will help protect your embroidery company’s assets, property, and income. The most common type of policy for small businesses is a business owners’ policy (BOP). It includes 3 basic types of coverage:
  • Business property coverage
  • General liability coverage
  • Business interruption coverage
My recommendations? Go with Progressive Commercial, Liberty Mutual, or Embroker. Additional resources for insurance for small businesses include this article at FreshBooks and this other article at the Small Business Administration.

Step 9: Set Up Your Website

You’ll need a website for your embroidery business to keep existing customers in the loop and explain your value proposition to new customers. A website also helps to drive embroidery sales and boost brand recognition. First, you need to choose a domain name and secure web hosting. For this, I recommend WordPress. You’ll also need to register your domain name at GoDaddy. Screen shot of Godaddy website Next, you’ll need to optimize your website. This will improve your search engine rankings and drive traffic. Ensure your website is optimized for mobile devices since most of your customers will use one to check out your website. You can use email marketing to send business updates to visitors. To hone your email marketing skills, read this article at WP Beginner. The US Chamber of Commerce has another terrific article you might want to read before you get your email campaigns off the ground.

Use Word of Mouth Advertising

One of the quickest ways to drum up customers for your fledgling embroidery business is through word-of-mouth advertising. So, let friends, relatives, and business associates know you’re starting an embroidery company. Here's a terrific article to read if you want to learn more about word-of-mouth marketing.

Getting Your Embroidery Business Ranked on Google

Many small businesses salivate at the prospect of getting ranked on the first page of Google. There’s a compelling reason for this: 92% of Internet users only look at Google's front page when they’re searching for something. What’s more, the people who discover your website through a Google search tend to stay on your website longer than visitors sent there via social media. What more proof do you need that ranking high in the SERPs is good for your business? If you want to boost your SEO, check out digital marketing agencies or find an expert on Upwork. You should also get a Google Ads account.

Step 10: Harness the Power of Social Media

Promoting embroidery business through social media sites In just a few short years, social media has emerged as an incredibly effective marketing method for businesses of all sizes. That’s why you’d have to be a lunatic to ignore the exponential power of social media when you’re considering ways to promote your business. Here’s one superb way Forest takes advantage of this powerful tool: [su_quote]I think one important thing is having a strong social media presence yourself. Because your customers are going to want—it's kind of a collaborative thing—where they want to take advantage of your presence, right? So, something we do a lot, when we feel good about a project, and we know the customer is really happy, we take a picture of it, and we ask them, 'hey, can we put this on Instagram and tag you? And like nine times out of ten, they say 'yeah, totally! And then they'll screenshot it and put it on their Instagram to promote it.[/su_quote] If you want to take a deep dive into the subject, read this article.

Step 11: Set Your Embroidery Prices

Embroidery prices are usually based on a per-thousand stitch rate—which is multiplied by the number of pieces. So, you could charge a fixed fee for every thousand stitches, or an hourly rate. Here’s an article put out by the SBA for further information about setting prices.

Step 12: Invest Your Money Wisely

Money’s going to be scarce in the beginning. That’s why you need to make some difficult decisions on where you’re going to spend your cash to grow your business. Here’s Forest again: [su_quote]I would say that you have to look at it practically, of like, where do I need to invest the money in the equipment to grow my business, and where do I need to kind of bootstrap to grow my business? It's knowing when to grow and when to just put in the sweat equity.[/su_quote] If you want to read more about budgeting for small businesses, check out this article.

Step 13: Always Pay Your Bills on Time

Woman paying bills Forest prides himself on making sure his embroidery business remains financially responsible. Here’s what he has to say on the topic: [su_quote]We always pay our bills on time, which is another very important thing to do if you're a business, is to have that business credit, that reputation, of paying your vendors on time.[/su_quote]

Step 14: Leverage Your Existing Relationships

Forest attributes much of his success to his ability to leverage existing relationships he built up in the previous industry he worked: [su_quote]So, you know, we had experience with the action sports industry. We started reaching out to that network first. And that definitely, to this day, is probably our largest client group. Look for relationships that are existing. Or, while you're thinking about starting a business, start building those relationships early on.[/su_quote] In any business, relationships are everything. If you don’t have any, start acquiring some. If you don't have that customer base, he recommends this: [su_quote]It's really hard to cold call people about screen printing and embroidery because 99% of the time it's 'yeah, I do that once-a-year dude, but not right now, and I'm busy.' So, I think the best way to approach that is to make yourself easy to find. Instead of going out and trying to promote yourself, make yourself very visible. Focus on SEO and your presence with social media. Make products or pilot products with friends and have them talk about them.[/su_quote] For more on building a customer base, read this article.

Step 15: Have Fewer Employees (But Pay Them Better)

Forest believes one pillar of his success is having fewer employees. This way, he can pay the ones he has better. This increases their motivation to do impeccable work: [su_quote]I've always had a belief that I would rather have a few very well-paid people than a bunch of people who don't really make that because you know, you can really get a lot out of them. I also feel like automation is a really big part of that formula because then one person who knows what they're doing can run one of these presses and make a couple of thousand dollars. And so, if we're competing against China and other countries where most of their business is done manually, it's really easy for us to be competitive—even globally. [/su_quote] He also works hard so that he sets a good example: [su_quote]Be the gold standard yourself. That's why a lot of these businesses don't really work out. I think the people that start them get into them, and they're like, 'Oh, I'll just work hard until I can get someone else to do it.' And they think after a year or two, I'm going to hire somebody to do all the work for me, and then that person, you can't either pay them enough, or they don't really, they're not the owner of the business. They're not passionate about it like you are. But if you're in there setting the standard for what hard work looks like every day, everybody that works for you, okay dude, I see Forest being rewarded, I see him rewarding us, and I see him setting that standard for what needs to be done in the day. I want to match that so I can continue to grow with him.[/su_quote] For more on what you should pay your employees, read this article.

How to Start an Embroidery Business from Home

Woman doing embroidery at home If you’re strapped for cash, you can always start your embroidery business from home. You’ll need a clean space that's big enough to hold your embroidery machine, computer, and embroidery supplies. You probably should purchase a computer that’s entirely dedicated to your at-home embroidery business. In other words, don’t use your personal computer. That’s because this way, essential business files won't get deleted, and you'll be better organized so your embroidery operation can run at peak efficiency. You'll also need some office space to store files and for doing administrative tasks.

How Much Money Can You Make with an Embroidery Business?

Forest’s breakeven point is $1,200 a day: [su_quote]This business is worth more than I ever imagined it being. I would think that if you were good at this, you could probably [break even] in two-and-a-half to three years.[/su_quote] After that point, everything you make is pure, unadulterated profit! On an average day, he makes about $3,500 in embroidery business income. On a good day, he makes $5,000 or more!

Final Thoughts

I just told you everything you need to know when starting an embroidery business. By doing so, you’ll be following in the footsteps of Forest Wedmore, who’s enjoying the fruits of his hard work by generating revenue measured in the high 6 figures each year. Wouldn’t you love to experience this level of success? It’s possible if you follow the steps in this article! Which strategy did you find most useful? Let me know in the comments!
We tested both programs to see how they compare. We compare the projects based on the following:
  1. Initial Setup
  2. Core Features
  3. Integrations
  4. Security
  5. Support
  6. Usability
  7. Pricing
  8. Apps
  9. Our overall opinion.
We’ll examine each of these providing you screenshots and explanations of what we liked and disliked about each. Let’s start with the initial setup.

Asana vs Monday: Initial Setup

Before you start reading this blog, I would suggest reading our in-depth testing of Monday.com. I go into detail about many of the features. Asana and Monday take different approaches to setup. Monday starts by asking what areas of an organization will be using the project management tool, while Asana goes almost immediately into creating your first project. Let’s look at each.

Asana Initial Setup

Asana has more of a checklist mentality for setup. The process includes:
  1. Naming the project
  2. Creating the checklist
  3. Method of marking progress
  4. Selecting the preferred project layout 
  5. Inviting team members
  6. Downloading the project management tool on devices
After you’re done, it will take you to the screen with your preferred layout. I chose the calendar. Screenshot of Asana website

Monday Initial Setup

Monday is more concerned with what segment of the business is most important to you and focuses on helping you create it first. Both can be beneficial for project management software, but I personally prefer the logic of Asana. Monday has more templates that make it easier to get setup quickly, but neither of them are necessarily as well set up as I would like.

Monday vs Asana Core Features

Monday and Asana both have similar project management tools, but how they approach each is different. Both offer: [su_note note_color="#dbeafc"]
  • Different types of boards 
  • Automations
  • Workflows
  • File Storage
[/su_note] Let’s look at how each approaches these functions.

Monday Features 

Screenshot of Monday key features website I would describe Monday as more focused on project management. Their features are more focused on getting quick overviews of company progress. I found their features to be a little difficult to achieve the full benefits. Monday lists the features as:
  • Dashboards: This feature makes it easy to view relevant information in one place, but it’s not really intuitive. For instance, the numbers widget is really a single-number widget. You’ll have to create a different one for each number you want to track.
  • Automations: I find the Monday automations difficult to set up exactly as I want. Finding the best way to write each automation can be challenging. I prefer visual process automations. These are not available in the free plan.
  • Integrations: Like Monday automations, the integrations are not free. They also have some bugs that I wasn’t able to solve in a timely manner. I discussed them more in our Monday.com review.
  • Gantt: This project management tool is the basis of measuring project timelines and success. I personally love these because they make it easy to view the project. The picture below shows the single project template from Monday.
  • Kanban: Another way to track tasks is Kanban. It’s great for high-level overviews but lacks the ease of viewing dependencies that project managers may want. The single project template doesn’t include automation that could make it easy for automated task updating, so you’ll have to create them yourself.
  • Work Docs: This feature can be used for anything from creating blog content to making checklists. The functionality is good. It’s honestly the most user-friendly portion of Monday project management software.
  • Files: Files are where you can attach anything related to the task, person, or project so that anyone viewing them can also view the files. Oddly, this isn’t a default column in any of the templates I’ve used.

Asana Features

Asana lists more project management tools as key features than Monday does, but don’t be fooled. Timeline, board, and calendar are simply similar views to Gantt and Kanban on Monday. Screenshot of Asana key features website The main difference between Asana and Monday are:
  1. Asana’s workflow builder uses a more logical automation process. 
  2. Integrations are not standardized in Asana. Some are super simple and make lots of sense, some are more complex, and some don’t seem to work. Asana should really standardize how their integrations work. The Canva and Asana one is literally explaining manual workflow management. That’s not an integration.
  3. The reporting generates a default report based on what you’ve created in Asana. You can also create custom reports. I like how easily this works. Here’s my default one.
Screenshot of Asana default report based website Overall, I’m finding Asana’s features better, but the lack of a great CRM template makes it hard to compare the two. If I’m building workflow management from scratch, I’m using Asana as it makes more sense to me. I think Monday’s templates are better, though. Ultimately, the features of Asana vs Monday are fairly comparable. I’d suggest opening both, checking out their templates, and deciding which you find more useful if this were the only consideration.

Monday.com vs Asana Integrations

Integrations with other software you use are a critical aspect of managing your workflow. While comparing Asana vs. Monday, the integrations are one of the hardest aspects to analyze because they take completely different approaches to integrations and automation. Let’s look at each.

Monday Integration and Automation

Monday project management software integrates with hundreds of the most popular software development companies but does not include integrations and automation in their basic plan. You’ll have to use one of Monday’s paid plans to connect to popular apps like Google Drive. The automation and integrations all had a standardized process, though. You can see the automation screen below. Screenshot of Monday integration and automation website

Asana Integrations and Automations

Asana allows integration with over 100 apps in the free version, but the integrations aren’t always intuitive. The Gmail integration is cool but took about 20 minutes to figure it out. Meanwhile, the Adobe one doesn’t seem to work well for me. I was hoping that the integration would let me take a photo in photoshop and attach it to a task in Asana, but it does not appear the tools perform that way.  Automation goes from basic in the free plan to customizable multi-step automation for complex projects in the business plan. They use a workflow builder that shows all the tasks together. The picture below shows the automation in Asana. Screenshot of Asana automation and integration website I think Asana is the winner regarding Asana vs Monday automation and workflow. Someone else might like the Monday project management software options enough that they prefer to use the sentence formats. Now, let’s look at how the two compare from a security standpoint.

Monday.com versus Asana Security

Project management tools are used by a variety of industries. Depending on your industry, you might have specific technical requirements to be considered compliant with regulations. Let's look at the security features Asana and Monday.com offer. 

Asana Security Features

Screenshot of asana security features Asana mostly focuses on security in their Enterprise plan, but many security features impact all of their plans. Here is a list of the Asana security features:
  • All systems are SOC2 and SOC3 compliant.
  • Accounts are General Data Protection Regulation (GDPR) and California Consumer Protection Act (CCPA, upon request) compliant. 
  • Asana is ISO certified.
  • Backups are performed daily to protect against data loss.
  • Asana provides options for specialized compliance tailored to financial, healthcare, or educational companies with the Enterprise plan.
  • Enterprise plans can use Single Sign-On, 2-Factor Authentication, and other controls to protect the system.
  • A team of security experts continually improves the system.
  • Bug Bounty Program that rewards up to $6,500 for vulnerabilities detected.
Learn more about Asana security.

Monday.com Security

Screenshot of Monday security features Monday is serious about cybersecurity. The project management software has taken many steps to ensure your data is secure. These are just some of the ways they protect your data:
  • All systems are SOC1, SOC2, and SOC3 compliant.
  • Accounts are General Data Protection Regulation (GDPR) and California Consumer Protection Act (CCPA, upon request) compliant. 
  • Monday is ISO certified.
  • Backups are performed every five minutes to protect against data loss.
  • Financial, healthcare, and educational companies can use Monday tailored for their compliance needs with the Enterprise plan.
  • Enterprise plans can use Single Sign-On, 2-Factor Authentication, and other controls to protect the system.
  • Works with PrivacyTeam to support security efforts.
  • Users can report security flaws by submitting this form. This is also part of a Bug Bounty Program.
  • Advertises it is on AWS and Google Cloud, which means they have cyber security experts from multiple agencies monitoring their security 24/7.
Review more about cybersecurity on the Trust Center While both have similar security features, Monday wins because they have a diverse set of professionals in multiple of the world's largest organizations looking for ways to improve their cybersecurity.

Asana vs Monday.com Support

Marketing team working on table Monday and Asana both were fairly quick at responding to support requests, but don’t expect their support to be available in a single sitting unless you are spending your whole day setting up the software. Let’s look at each.

Monday Support 

I tested the Monday.com support service previously. Read the full review of Monday.com. They were fairly quick about responding, but I would have preferred a video chat with screen sharing. Overall, I was surprised at how quickly they responded to my support request, but supposedly others do not always have the same experience.

Asana Support

Asana crashed on me while creating a form, so I sent them a request and received an automated email quickly after. The following excerpt is the content of the email: Screenshot of Asana email support They sent me another email from AI that told me to change my browser (I was in Chrome) and send a screen recording. That wasn’t helpful. Monkey in front of a laptop Honestly, I was less satisfied with Asana’s support than Monday.com's support. Monday’s morning project management won the support round, but neither of them was particularly useful. I’d recommend screen recording your setup processes because the support is notoriously bad for SaaS. Screen recordings are the only way you’ll get anywhere with support.

Asana or Monday: Usability

Usability depends on how your mind works. It’s also impacted by whether a non-technical team member is setting it up or you are hiring a professional with lots of experience to set it up.  I would consider the usability a draw because Monday.com has an advantage in the quantity and quality of templates for project managers. It also didn’t crash on me. There are plenty of good project management features that make Monday easy to use. On the other hand, I would probably go with Asana for custom setups because Asana offers phone support, and the workflow is more logical to me. 

Asana vs Monday Pricing

Monday is often considered the best project management software. For teams over 40 people, I would agree. For smaller teams, I think Asana offers more value. The differences in the free plan drive Asana’s value. 

How much does Asana cost?

Screenshot of Asana website pricing Asana offers unlimited tasks, up to 15 team members, and time tracking in the free plan. Asana’s pricing is around $15 per user each month for a Premium account or about $30 per user each month for a Business account. There’s a catch, though. They charge in batches. The first 30 users are purchased in batches of five, then batches of 10 up to 100 users, 25 up to 500 users, and batches of 50 after 500 users. In other words, it can get costly pretty fast. Here’s a recent breakdown of Asana’s cost for different numbers of users. [su_table responsive="yes" alternate="no" fixed="yes"]
Pricing Asana
Number of Users Free Premium Business
1-5 0 $67.45 $152.45
6-10 0 $134.90 $304.90
10-15 0 $202.35 $457.35
16-20 N/A $269.80 $609.80
21-25 N/A $337.25 $762.25
26-30 N/A $404.70 $914.70
31-40 N/A $539.60 $1,219.60
41-50 N/A $674.50 $1,524.50
51-60 N/A $809.40 $1,829.40
61-70 N/A $944.30 $2,134.30
71-80 N/A $1,079.20 $2,439.20
81-90 N/A $1,214.10 $2,744.10
91-100 N/A $1,349.00 $3,049.00
101-125 N/A $1,696.50 $3,811.25
126-150 N/A $2,044.00 $4,573.50
151-175 N/A $2,391.50 $5,335.75
176-200 N/A $2,739.00 $6,098.00
201-225 N/A $3,086.50 $6,860.25
226-250 N/A $3,434.00 $7,622.50
251-275 N/A $3,781.50 $8,384.75
276-300 N/A $4,129.00 $9,147.00
301-325 N/A $4,476.50 $9,909.25
326-350 N/A $4,824.00 $10,671.50
351-375 N/A $5,171.50 $11,433.75
376-400 N/A $5,519.00 $12,196.00
401-425 N/A $5,866.50 $12,958.25
426-450 N/A $6,214.00 $13,720.50
451-475 N/A $6,561.50 $14,482.75
476-500 N/A $6,909.00 $15,245.00
501-550 N/A $7,583.50 $16,769.50
50 additional users N/A $674.50 $1,524.50
[/su_table]

What is the price for Monday.com?

Screenshot of Monday website pricing If you have over five team members or need features unavailable in the free plans, Monday wins the pricing for all its categories. They have four pricing tiers in addition to their free version with prices around:
  1. Basic: $10 per user each month with a 3-user minimum
  2. Standard: $12 per user each month with a 3-user minimum
  3. Pro: $20 per user each month with a 3-team members minimum
  4. Enterprise: Contact Monday.com for a quote
They require quotes for more than 40 users. I suspect that is because they try to establish whether your automation and integration actions will be acceptable. You can see the breakdown of the pricing plans below. [su_table responsive="yes" alternate="no" fixed="yes"]
Monday Actual Pricing
Number of Users Free Basic Standard Pro Enterprise
1-3 0 $30.00 $36.00 $60.00 Contact for Pricing
4-5 0 $50.00 $60.00 $100.00 Contact for Pricing
6-10 N/A $100.00 $120.00 $200.00 Contact for Pricing
10-15 N/A $150.00 $180.00 $300.00 Contact for Pricing
16-20 N/A $200.00 $240.00 $400.00 Contact for Pricing
21-25 N/A $250.00 $300.00 $500.00 Contact for Pricing
26-30 N/A $300.00 $360.00 $600.00 Contact for Pricing
31-40 N/A $400.00 $480.00 $800.00 Contact for Pricing
41+ N/A Contact for Pricing Contact for Pricing Contact for Pricing Contact for Pricing
[/su_table] Ultimately, unless you can use the free plans, Monday.com has a massive pricing advantage over Asana’s Business or Premium Plan.

Monday or Asana Apps

Both project management software providers offer desktop, iOS, and Android apps. They both have a similar number of reviews and ratings on iOS. Monday has nearly 15,000 reviews and a 4.8-star rating, while Asana has almost 13,000 reviews and a 4.7-star rating. On Android, Asana has over 37,000 reviews with a 4.3-star rating, while Monday has 15.5K reviews and a 4.4-star rating. People prefer the Asana app, which is understandable because I didn’t find any issue while testing it. It also had cool animations when you mark task progress as complete. You can download the apps and test them yourself.

What Can I Use Instead of Monday.com?

Screenshot of Clickup and Jira website If you’re looking for project management software to replace Monday.com, you should consider Asana. You can also try:
  • ClickUp, which we use at UpFlip. 
  • Jira, which I’ve used with software development clients. I don’t personally like it as much, but Atlassian makes a whole suite of other tools that work really well with it for managing projects.
Many CRM and project management tools are focused on specific industries. If you can find one built specifically for businesses in your industry, those will often be better. They are frequently built by people who need a more logical workload function than what both Asana and Monday.com provide for each specific industry.

Which Is Best Monday.com or Asana?

Confused man with question mark symbol on shirt Given that most people prefer functionality over price, I would say that Asana is the best software for the employees performing tasks. The software is set up in a way that works well for employees performing specific tasks, but isn’t as robust for management and decision makers. If your financial management and portfolio management teams are primarily using the software, go with Monday. The Kanban board and Gantt chart views are exactly what you would expect when managing projects. In addition, they have more sophisticated dashboards for financial management.

Why is Asana the best?

Asana is the best at task management. The checklists make it really easy to see what you need to get done that day. Combine that with up to 15 free users, and that means between 72% and 85% of companies are able to use the free plan.

Why is Monday.com the best?

Monday is the best because it has way more templates than the team collaboration tools in the market. This might change as other companies grow, but Monday.com and Asana are the current leaders.

Is Monday Same as Asana?

No. Monday focuses more on team management, while Asana focuses more on task management.  You'll probably want to go with Monday if you are heavily focused on portfolio management, resource management, and financial management. If you are more focused on completing individual tasks, Asana takes a slight edge because it offers more features and makes it easy for new users to identify their daily tasks.

Asana vs Monday Conclusion

When it comes down to it, what this Asana and Monday.com comparison should really tell you is that both will help you manage new tasks. Ultimately team size, the need for premium features, and which tools you like better will be the determining factor in whether you prefer Monday.com vs Asana. Both have: [su_note note_color="#dbeafc"]
  • Gantt charts
  • Kanban boards
  • Two-factor authentication
  • Timeline view
  • Tasks
  • Due dates
  • Calendar view
  • Integration with Google Drive
  • Ability to attach documents to different tasks and projects
[/su_note] My recommendation is to test out the free plans for each to see which you like better as a new user. If you already have employees, ask them which they prefer. Include the people who will be using it while creating the projects, dropdown menu(s), and tasks.  Do you have experience with Asana or Monday? Have you tried any other software for project management and viewing task details? What did you like and what would you like to see improved?

Some people love being on the go, experiencing new places, and networking. The best mobile business ideas all require traveling. 

Want to know the best part? Every mobile business idea on this list has the potential to make you rich! Find out how number 13 on our list made a 19-year-old a millionaire.

We discuss the characteristics of a mobile business and different types of mobile business ideas, then give you examples of different types of mobile businesses. 

[su_note note_color="#dbeafc"]

Click on any of the links below to jump straight to the mobile business idea that looks good to you.

What is a Mobile Business?

There are a couple of things that people can mean when they talk about a mobile business model. It can mean either:

  • A portable business that doesn’t have a fixed location, either because it goes to customers’ homes or because it operates out of a truck, cart, or other vehicle
  • A business enabled by wireless technology like a smartphone app or Bluetooth connection, also known as an m-business

Many businesses fit both of these definitions, while other mobile businesses are just one or the other. What all mobile business ideas have in common, though, is that they don’t rely on a traditional brick-and-mortar storefront to connect with customers. 

Types of Mobile Businesses

Even beyond the two broad categories of mobile businesses above, there are many different forms this type of venture can take. Some of the most common include:

  • In-home mobile service business - These mobile businesses travel to a customer’s home to provide a service. Examples include house cleaning, interior designers, private chefs, pet sitting, or other businesses that serve customers in their own homes.
  • Business truck - Running out of a truck or cart is an obvious way to turn a business mobile. This is the best option when the business requires equipment that’s otherwise not easily portable, like a food truck or mobile pet groomer. 
  • Pop-up business - These businesses interact with customers face-to-face outside their homes in a temporary location, like a short-term stay in a commercial space or a booth at a market, fair, or festival. 
  • App-based business - These can be businesses that customers engage with only online, like an SaaS company or a mobile company that allows customers to book a service through an app, such as a shuttle or delivery service business. 

Whatever type of business you open, mobile businesses offer a lot of benefits. They often have a lower initial investment, for one thing, since you don’t need to worry about a commercial space. It’s also very convenient for customers to have a business come to them and lets small business owners go where their customers are rather than needing to attract customers to a specific location. 

Wondering how to start a mobile business? Check out the options on this mobile business ideas list to learn about some of the best mobile businesses to start.

Top 2 Most Profitable Mobile Business Ideas

#1. Mobile Car Detailing

Average Annual Revenue: $73,100
Average Profit Margins:
16.1%
Startup Costs:
$500-$5K
Time To Revenue:
3+ months
Annual Market Growth Rate:
1.0%
Best for: Car lovers and experts, detail-oriented entrepreneurs with customer service skills

A mobile car wash or detailing business hits the sweet spot for many aspiring entrepreneurs. It’s affordable to start, doesn’t require special licensing or experience, and is a convenient way to offer customers an in-demand service. 

If you want to offer even more value to customers (and diversify the revenue streams in your business plan), you can offer other vehicle services, like a mobile oil change business or on-site car wrapping. 

You can also make substantial revenue from just offering mobile detailing services. GoDetail was started with $500 and now makes more than $900,000 in revenue, with 60% margins. Hear how Alan Tursunbaev started his mobile business in this interview:

[su_youtube url="https://www.youtube.com/watch?v=riTWH_MG6Uc"]

#2. Vending Machine Business 

Average Annual Revenue: $182,100
Average Profit Margins:
4.3%
Startup Costs:
$2K-$10K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.5%
Best for: People with strong networking and sales skills, system-oriented entrepreneurs who like driving, those looking for flexibility and passive income potential

Vending machines are almost like money printers—as long as you have the right machines in the right locations. Adam Hill, who makes over $58K a month in vending machine revenue, says a single machine can earn upward of $2,000 a month. Now imagine having two, three, four of those.

The best part is you can operate your vending machine business from virtually anywhere. All you need is enough space to store your snacks, drinks, or whatever else you’re selling. Intrigued?

We were, too! We pestered Adam until he agreed to spill the beans and take us behind the scenes of his vending machine empire. The best part? UpFlip readers get free access to his vending masterclass.

You can also hear his insights in this video interview: 

[su_youtube url="https://www.youtube.com/watch?v=-s_Y-O1nosw"]

9 Mobile Service Business Ideas

#3. Mobile Pet Grooming Services

Average Annual Revenue: $73,533
Average Profit Margins:
11.5%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
1.1%
Best for: Dog lovers and experts, salon and grooming professionals, empathetic and detail-oriented entrepreneurs with strong customer service skills

There are millions of pet owners in the United States, and that number grew substantially during the pandemic. That’s part of what’s grown the pet grooming industry to more than $5.3 billion in 2021, and it’s projected to continue growing at a compound annual growth rate (CAGR) of 7.09% through 2030. 

A mobile pet grooming business is a unique and convenient way to tap into this fast-growing niche market. It gives busy pet owners an easier way to take care of their animals on their own schedule. Any time you can make customers’ lives easier, you’re on your way to running a successful business. 

There are a few ways to start a mobile pet grooming business. One option is to buy a business truck where you groom the animals. You can also schedule time in an apartment building common area or other communal space close to your customers, which can be one way to save money on the initial investment if you’re starting with a tight budget. 

#4. Cell Phone and Electronics Repair

Average Annual Revenue: $560,320
Average Profit Margins: 5.7%
Startup Cost: $500-$5K
Time To Revenue: 1-3 months
Annual Market Growth Rate: 1.4%
Best for: Electronics experts, DIY makers and fixers, repair pros, and system-oriented entrepreneurs with a sharp eye for detail

People today rely on their electronic devices more than ever before—and have more of them. This has driven steady growth in the electronics repair and maintenance industry, a sector that’s expected to more than double in value over the next 10 years. 

Operating as a mobile business is an excellent way to stand out in this niche. Instead of customers needing to take their broken phone or device to a shop, you go to them and either fix the device on-site or pick it up and bring it back when it’s repaired.

Joe’s is a device repair service that was started with about $45 and grew to seven figures of revenue in less than five years. Part of this growth was driven by offering mobile repair services in addition to in-store services. Find out how Joe Pilat grew his business in this interview:

[su_youtube url="https://www.youtube.com/watch?v=Rqce8NAZWYw"]

Another way to grow your repair business revenue is by offering other electronics-oriented services. For example, you could provide mobile tech support for businesses with remote workers, or buy broken electronics then repair and flip them for a profit. 

#5. Mobile Bike Repair Services

Average Annual Revenue: $726,530
Average Profit Margins:
4.5%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.2%
Best for: Mechanics, avid cyclists, hands-on and mechanically minded entrepreneurs

Between rising fuel costs and growing interest in sustainable living, bikes have seen a resurgence in popularity. While cars are still the most common form of transportation, 11% of U.S. commuters biked to work in 2023, roughly double the figures from 2019, and that doesn’t include the millions of people who ride a bike for fun. 

Those figures put a bike repair service among the most profitable mobile business ideas to start today. Bike repair equipment and spare parts are portable enough to offer mobile bike services using a personal vehicle if you don’t have the budget to invest in a truck. 

#6. Airport Shuttle Service

Average Annual Revenue: $1,522,430
Average Profit Margins:
6.9%
Startup Costs:
$100K-$3.5M
Time To Revenue:
6-18 months
Annual Market Growth Rate:
6.7%
Best for: Skilled drivers with strong organization and time management skills

The air travel industry is back in full swing, and that presents an opportunity for prospective mobile business owners: getting people to and from the airport. 

Even people who normally drive or take public transportation often seek out a designated shuttle service for trips to the airport. For longer trips, it’s often cheaper to pay for a shuttle than for parking, while luggage can be a hassle on subways or buses.

The main expense to start an airport shuttle service is the vehicle you’ll use. If you’re just buying one, it’s often best to invest in a passenger van that will accommodate multiple travelers with their luggage. A solo entrepreneur can start off with a single van then reinvest their profits into more vehicles as they grow their mobile business.

#7. Cleaning Business

Average Annual Revenue: $74,880
Average Profit Margins: 6.7%
Startup Costs: $1K-$30K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.2% 
Best for: Detail-oriented and organized entrepreneurs, neat freaks, people who like working with their hands

The demand for cleaning services has skyrocketed in recent years. Between Airbnb and Vrbo creating an enduring need for rental-specific cleaning services and people’s heightened requirements for hygiene and cleanliness brought on by the pandemic, the industry is on track to be worth more than $10 billion by 2026 (seriously!).

Cleaning services have transitioned from a luxury to a need, and that shift is allowing cleaning business owners to achieve six- and seven-figure earnings quickly. Our friend Chris Mondragon, for example, is pulling in over $125K a month from his cleaning business, Queen Bee Cleaning.

If you’re after a mobile business idea, this is definitely one to look into as you won’t need an office, just enough space to store your cleaning supplies. In collaboration with Chris, we created a free cleaning business masterclass that takes you from A to Z and covers everything you need to get started. Gain free access here.

Chris also talks about starting Queen Bee Cleaning in the YouTube video below:

[su_youtube url="https://www.youtube.com/watch?v=YcYIYdqegGA"]

#8. Clothes Cleaning Services

Average Annual Revenue: $311,220
Average Profit Margins:
22.1%
Startup Costs:
$100K-$3.5M
Time To Revenue:
6-18 months
Annual Market Growth Rate:
-0.1%
Best for: System- and detail-focused entrepreneurs

If you’re looking for mobile business ideas with a low barrier to entry, a laundry or dry cleaning service can be a great option. Individuals aren’t the only customers who will appreciate the convenience of pickup and drop-off laundry. You can also find customers in other local businesses that use towels and linens, like restaurants and Airbnbs. 

The cost to start a mobile laundry service can be as low as $2,000 or as high as $35,000 or more, depending on the size of your business and the services you offer. If you have the budget, investing in one or more commercial washers and dryers will allow you to clean more clothes faster, though you can start off using your home equipment or even a public laundromat if you’re starting on a shoestring. 

#9. Delivery Services

Average Annual Revenue: $131K
Average Profit Margins:
3.6%
Startup Costs:
$100-$9.5K
Time To Revenue:
3+ months
Annual Market Growth Rate:
6.7%
Best for: Organized and system-driven entrepreneurs with strong communication and customer service skills

Online shopping exploded during the pandemic, and while the eCommerce share of the retail sector has cooled from its 2020 peak, consumers still appreciate the convenience of at-home delivery. 

Starting a mobile business in delivery services isn’t just a way to capitalize on this trend, but it also lets you help other local businesses get their products to customers. That was Adam Haber’s goal when he started Trellus, and in less than two years they’ve made more than 35,000 deliveries for their more than 300 merchant partners. Hear how he built his company in this podcast:

There are also lots of unique mobile business niches that you can focus on as a delivery company. Some of the most in-demand options include: 

  • Becoming a personal shopper 
  • Grocery delivery business
  • Courier service for packages and important documents
  • Print delivery service
  • Newspaper or magazine delivery

#10. Party Bus Business

Average Annual Revenue: $689,656
Average Profit Margins:
8.8%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.7%
Best for: Outgoing and social entrepreneurs, people with event planning and party planning experience

Do you like to party? Why not take that on the road? Starting a party bus is a unique mobile business idea with the potential to be very profitable. The average party bus rental costs about $700 for a four-hour trip, and you can grow that revenue even further if you have multiple buses people can rent. 

You can have a lot of fun getting creative with a party bus business. If you live in a city with an active nightlife, you can offer bar crawls or brewery tours as part of the package. You can also change up the decorations to offer theme parties, or partner with other local businesses like wineries or distilleries for mobile tastings. 

#11. Mobile Yoga Business

Average Annual Revenue: $243,063
Average Profit Margins:
7.2%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.8%
Best for: Yogis, fitness instructors, physical fitness trainers

Yoga and Pilates are popular forms of exercise for many Americans. Tech companies, music festivals, and affluent people all have yogis come out to their sites to help people stay in shape in a manner that helps build self-control and confidence without straining the body too hard.

The average studio makes $143K per year, according to IBIS World Report OD4185.

6 Mobile Truck Business Ideas

#12. Mobile Coffee Business

Average Annual Revenue: $865,800
Average Profit Margins:
5.8%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
1.2%
Best for: Baristas, customer service pros, morning people, coffee lovers with strong time management and communication skills

A good portion of the population starts every day with coffee, so why not start a business that brings their favorite beverage right to them? Like a food truck, a coffee truck or coffee cart is much cheaper and easier to start than a brick-and-mortar cafe and can be a great small mobile business on its own or as a gateway to starting your own permanent space.

The main expense to start a mobile coffee business is the truck itself. You can save money by instead starting with a coffee trailer, which you can get for as little as $10,000 if you buy one used.

#13. Truck Delivery Service

Average Annual Revenue: $131K
Average Profit Margins:
3.6%
Startup Costs:
$100-$9.5K
Time To Revenue:
3+ months
Annual Market Growth Rate:
6.7%
Best for: Commercial drivers, people with strength and stamina who like physical work

We mentioned delivery services as a business idea earlier, but doing it with a full truck expands your options and is enough of an industry on its own to warrant a separate section. 

A trucking service can be either local or nationwide, depending on the scope and size of your business. Having a large truck lets you haul heavy, large objects that most people can’t move on their own—things like heavy machinery, appliances, or furniture. 

You don’t need any specific skills or experience to start a trucking business, either. Mikael Sant started Sant Lines when he was just 19 and brought in $150,000 in revenue in his first three months. Hear how he got started in this interview:

[su_youtube url="https://www.youtube.com/watch?v=-8TnsjDRXUE"]

#14. Mobile Billboard Trucks

Average Annual Revenue: $697,840
Average Profit Margins:
13.5%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
-7.3%
Best for: People with sales and marketing skills, proficient networkers, advertising professionals

Cars are still the most popular way to get around in the United States. People spend a lot of their time on the road. This is what makes billboard trucks a great mobile business idea, giving other local businesses a new way to get their brand in front of customers.

Outdoor advertising, like mobile billboard trucks, has seen an 11% increase over the past five years, and that trend shows no signs of stopping. The best part is you can combine a billboard business with another mobile business idea, like a delivery service, to get even more revenue out of every trip your drivers take.

#15. Mobile Hair Salon Truck

Average Annual Revenue: $51,380
Average Profit Margins:
5%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.9%
Best for: Beauticians, barbers, hair stylists, style and fashion experts

If you love cutting and styling hair, starting your own mobile salon can be an excellent mobile business idea. Running your business out of a truck lets you use the same chairs, sinks, and other equipment you would in a brick-and-mortar while also giving you the flexibility to go to customers where they are. 

A mobile salon can also operate in a range of niches. For example, you can specialize in doing hair for special events, like proms or weddings. 

Now, unlike many of the mobile business ideas on this list, you do need a cosmetology license to legally operate a mobile salon. Make sure to research the licensing requirements for your state when you’re writing your salon’s business plan.

#16. Mobile Farmers Market Truck

Average Annual Revenue: $112,644
Average Profit Margins:
3.4%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.8%
Best for: People with strong networking skills, entrepreneurs passionate about sustainability and farm-to-table food

Turning a truck into a mobile farmers market lets you bring people fresh vegetables, fruit, and meats straight from the farm, and that’s a win-win. You can support local farmers, help people eat healthier, and grow your own business, all at the same time. 

The first step to starting a mobile farmers market is to connect with the local farms that will provide your inventory. While you’re writing your business plan, decide if you’ll buy their products wholesale or sell their products on a commission basis.

#17. Mobile Clothing Boutique

Average Annual Revenue: $141,492
Average Profit Margins:
5.3%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
0.5%
Best for: Fashion designers, stylists, people with retail experience, business acumen, and communication skills

The eCommerce fashion industry is booming, especially resale and secondhand apparel, a sector that grew by 24% just in 2022. The main downside of online fashion stores is that customers can’t feel the clothes or try them on before they buy. 

Mobile boutique stores are the best of both worlds. Customers can get up close to the clothes and make sure they fit, just like in a brick-and-mortar retail boutique store. At the same time, operating as a mobile business means you don’t have to rent or buy a storefront in a high-traffic area to connect with buyers. 

The first thing to decide when you’re writing your business plan is whether you’ll focus on new or second-hand clothes. You can also make your items available for people who can’t get to your truck by pairing your mobile boutique offerings with an eCommerce storefront. 

Mobile Businesses for Corporate Events

#18. Food Truck Business

Average Annual Revenue: $41,040
Average Profit Margins:
6.4%
Startup Costs:
$1K-$100K
Time To Revenue:
3+ months
Annual Market Growth Rate:
1.2%
Best for: Chefs, bakers, cooks, and others with restaurant industry experience, foodies with customer service skills

Like catering, food trucks are a more affordable way to start your own business in the restaurant industry. While a new food truck can cost $100,000 or more, you can find used trucks for half that price or less or start with a food cart if that’s still outside your budget. 

Kyle Gourlie started his food truck, the Vet Chef, in 2016, and within a year was already one of the most popular trucks in Western Washington. Learn how he grew his food truck business in this interview: 

[su_youtube url="https://www.youtube.com/watch?v=YCnE13BaQlk"]

#19. Mobile Photography Services

Average Annual Revenue: $50K
Average Profit Margins:
7.3%
Startup Costs:
$1K-$10K
Time To Revenue:
1-6 months
Annual Market Growth Rate:
0.3%
Best for: Photographers, videographers, and visual artists who are excellent communicators

A photography business is a natural fit for a mobile business model because most of the things people want to have photographed don’t happen in a studio. Running a mobile business lets you keep costs low while meeting your customers where they need you. 

Like other options on this list, there are a lot of niches you can focus on in this industry. The event photography business has rebounded from its 2020-21 slump, and taking photos for weddings and corporate events can be a highly lucrative business in 2024. 

Another way to differentiate your photography business is to offer drone photography services that let you take sweeping panoramas and overhead shots. This opens up potential clients like real estate agents who need full shots of properties they’re listing. 

Mile High Productions turned their expertise with drone photography into a $35,000-a-month business. You can hear how they started and grew in this YouTube interview:

[su_youtube url="https://www.youtube.com/watch?v=EUcv1HAAbns"]

#20. Catering Services

Average Annual Revenue: $124,410
Average Profit Margins:
5.5%
Startup Costs:
$1K-$100K
Time To Revenue:
6-18 months
Annual Market Growth Rate:
1.0%
Best for: Cooks, chefs, and foodies with strong communication and customer service skills

When people need to feed the attendees at corporate events or special events like a wedding, a catering service is the go-to way to do it. It’s also one of the most affordable ways to start your own business in the food industry. The average initial investment for a catering business is $30,000—not chump change, by any means, but much lower than the 6- or 7-figure investment to start a brick-and-mortar restaurant. 

A mobile catering business can take a few forms. Many mobile caterers rent commercial kitchen space to prepare the food. Others may use on-site kitchens in event spaces or at customers’ homes, or use mobile kitchens similar to food trucks.

The right option for you will depend on your startup budget, the type of food you make, and the kinds of events you plan to cater. These are all questions to ask yourself as you’re writing the business plan for your new mobile food business. 

#21. Event Planning

Average Annual Revenue: $34,380
Average Profit Margins: 12.2%
Startup Costs:
$500-$5K
Time To Revenue:
3 months
Annual Market Growth Rate:
1.0%
Best for: Strong networkers, great party planners, outgoing and social entrepreneurs

Event planning is a great mobile business. An event planner can organize music events, corporate events, sporting events, weddings, and other parties. The largest segment of the industry is corporate events. Make sure you have connections with other professionals in the corporate events sector if you are going to plan events, as you’ll be responsible for hiring them.

Hit the Road and Make Some Money

Now that you have some mobile business ideas, it’s time to take one of them and turn it into a career. Check out our business hub or courses for more in-depth walkthroughs on how to start a mobile business.

Which mobile business idea sounds best for you?


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