How to Start a $500K/Year Auto Repair Shop (2024)
November 17, 2022
November 17, 2022
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.
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.
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.
Automobile repair shops have a lot of competition. They have seven major competitors that operate in their field.
In addition, they may also compete with:
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.
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:
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).
The operating expenses for auto repair businesses break down into the following:
That is how car repair shops make 6.3% after tax profit.
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:
Check out our interview with Lucky below:
He collects a salary now, but he didn’t for the first few years. He told us
He also told us he aims for no profits because:
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.
When we asked what mechanic shops do with business profits, Lucky told us:
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:
So don’t spend it all on a fat bonus after you pay quarterly taxes.
There are three ways to educate yourself on how to repair cars and provide maintenance services:
No matter which you choose, Lucky emphasized the importance of getting your hands in the vehicle and learning to do it firsthand.
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:
Lucky had a lot to say about going to a tech school. He went to one and told us:
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.
His repair shop even invests in ongoing education for his mechanics. He told us:
He even recommended a company he suggests mechanic shop owners 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.
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.
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:
Next, let’s look at planning a new business.
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:
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.
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:
Lucky told us:
Some other options for a car repair shop include:
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:
While the way he started his business with a unique source of funding, he estimated the cost to start today would be:
He also told us:
Let’s look at the startup costs.
You’ll need to invest in the following items before starting an auto repair shop:
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.
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 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.
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.
Automotive repair shops will normally need a location to repair cars. Before you start a mechanic shop consider:
Lucky told us:
He also told us that he is looking for a new space. He told us:
Once you have the space, you’ll need to prepare your new business for the grand opening.
In this section, we’ll discuss setting up your software, tools, and marketing, so that you’re prepared to start serving new customers
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.
You’ll need a website with relevant pictures, your address, services, phone numbers, and appointment requests. Lucky told us:
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/:
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 offers four main products:
Based on the interview, it appears that Lucky utilizes the manager SE and ProDemand®. He said:
He also told us that Quickbooks was what he used until he could afford more sophisticated software.
He also use a program that helps tune up shops show repairs needed.
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.
Let’s talk about tools next.
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:
You’ll need to have a marketing strategy in place to help increase your business. Part of the marketing strategy should include:
Most mechanic shops only spend about 2% on marketing to find potential customers. You have lots of options with your own business. You can:
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.
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:
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.
Now that you’re ready to start serving customers, we’ll walk you through the process.
An auto repair shop will have a process similar to the one below:
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.
When we asked Lucky what he attributes his success to, he responded with:
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.
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.
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:
Finally, he told us his approach to quality control and customer reviews:
You’ll have to pay monthly expenses to keep your business operating. You’ll want to make sure to pay:
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?
Brandon Boushy
[su_youtube url="https://www.youtube.com/watch?v=P-Hl17zsmuo"]
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 |
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 |
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.
There are a couple of things that people can mean when they talk about a mobile business model. It can mean either:
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.
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:
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.
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"]
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"]
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.
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.
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.
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.
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"]
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.
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:
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.
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.
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.
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"]
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.
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.
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.
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.
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"]
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"]
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.
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.
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?
Learn from business failures and successes in 5 min or less. The stories, frameworks, and tactics that will make you a 10x better founder.
Join our 45,000+ entrepreneurs