$20K Invested to Start an Auto Repair Shop (Did it Work?

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Starting your own business can feel like an uphill battle, especially when money is tight. But Lucky Sing, owner of Lucky’s Auto Repair, is proof that with the right know-how and persistence, success is within reach. From operating out of his home to bringing in $40,000+ a month, Lucky’s journey is a masterclass in resourcefulness, team building, and customer connection.

Let’s dive into Lucky’s story and pull out strategies you can use to Start an Auto Repair Shop or any service-based business.

How It All Started

Lucky didn’t open his shop on a whim. His story began when he was a teenager, constantly tinkering with cars. That love for problem-solving pushed him to attend Bellingham Technical School, where he earned his automotive degree.

After gaining experience at dealerships like Northwest Honda and other shops, Lucky felt confident enough to strike out on his own in 2016. Starting with just $20,000 saved by selling his prized Skyline GT-R, he opened Lucky’s Auto Repair on his property. It wasn’t glamorous—a mix of convenience and affordability made the location his top choice.

Seven years later, what began as a two-person operation is now a thriving business with four employees.

Services with the Best Margins

Auto repair shops offer a wide range of services, but Lucky has found that major engine work delivers the highest profit margins. Jobs like engine swaps require significant time and expertise, but when done efficiently, they leave plenty of room for profit.

The shop uses software to estimate how long each job should take, which ensures accurate pricing and keeps the work manageable for the team. On the flip side, simpler tasks, like oil changes, have lower margins but are great for bringing in repeat customers.

Creative, Low-Cost Marketing

Lucky’s marketing game is refreshingly simple—and effective. Instead of spending thousands on ads, he uses branded box trucks as mobile billboards. These trucks, parked in high-visibility areas (with permission from property owners), generate significant foot traffic.

The secret? When customers call or visit, his team asks a straightforward question: “How did you hear about us?” The trucks consistently rank as one of the top referral sources.

This strategy isn’t just cost-effective; it’s also smart. Since Lucky already does business with many of the property owners where the trucks are parked, it’s often a win-win arrangement.

The First Step for Aspiring Auto Shop Owners

For anyone dreaming of opening a shop, Lucky’s advice is practical: start by honing your skills. Whether you’re learning through online resources like YouTube or attending a technical school, hands-on experience is essential. “You can’t just watch videos,” Lucky says. “You’ve gotta get in there and do it.”

If trade school feels out of reach, consider working your way up in a dealership or repair shop to gain practical knowledge. Lucky credits his combined years of formal study and on-the-job training as the foundation of his success.

Building a Great Team

As Lucky puts it, your team can make or break your business. Hiring technicians who are invested, hardworking, and aligned with your shop’s vision is crucial. A bad hire can hurt morale, slow workflows, and even damage customer relationships.

But Lucky doesn’t stop at hiring quality employees—he invests in them. Training, communication, and respect are at the center of his management style. He encourages employees to share ideas and solutions, building a collaborative environment where everyone feels valued.

Systems That Keep the Shop Running Smoothly

Lucky’s shop uses software to stay organized and efficient. Here’s what powers his day-to-day operations:

• Mitchell: Handles invoicing, repair procedures, and customer history.
• Bolt On: Manages digital inspections through tablets.
• QuickBooks: A straightforward choice for invoicing if you’re just starting out with a tight budget.

While these programs carry recurring costs (approximately $1,000 a month for Lucky’s setup), they streamline tasks and keep everything running smoothly.

Breaking Down the Numbers

Lucky’s shop brought in an impressive $395,000 in revenue last year and is on track to grow even more this year. His goal? Hit $500,000 in sales.

But he’s also learned to focus on profit margins rather than chasing big revenue numbers. With a slim 10% profit margin, Lucky reinvests most of his earnings back into the business. While the percentage may seem low, it ensures his team is well-paid, his tools are up-to-date, and taxes remain manageable.

“A great accountant will tell you how to maximize your profits without overpaying in taxes,” Lucky shared, emphasizing the importance of understanding the financial side of your operation.

Why Location Doesn’t Always Matter

When Lucky opened for business, he didn’t have prime real estate—and he didn’t need it. Thanks to online reviews, word-of-mouth referrals, and search engines, customers now prioritize quality over convenience.

That said, Lucky recommends keeping overhead low when starting. But if you’re planning to run a large-scale operation, then location becomes far more critical.

Lucky’s shop thrives in a quiet, rural area, proving that a great reputation can attract customers from miles away.

Adapting to Industry Changes

The automotive industry is evolving rapidly, especially with electric vehicles (EVs) entering the mainstream. Lucky has embraced the shift by investing in additional training for himself and his team.

As EVs age out of their warranties, repair shops will see plenty of demand for servicing these vehicles. Staying ahead of the curve with education and certifications will ensure businesses like Lucky’s are prepared for the future.

The Power of Strong Customer Relationships

Lucky views customer service as the backbone of his business. Instead of just fixing cars, his team focuses on building trust. From personalized conversations to complimentary inspections, Lucky ensures customers feel valued from start to finish.

“We treat it like a relationship,” he says. This human touch sets his shop apart from larger, more transactional competitors.

The Importance of Online Reviews

Online reviews are a big deal for mechanic shops. Lucky’s team takes a proactive approach by asking for reviews after every service. They follow up with reminders via text and even conduct random quality control calls to ensure customers are satisfied.

These reviews not only boost Lucky’s Google ranking but also provide new customers with the confidence that they’ll receive top-notch service.

Lessons Learned and Mistakes Made

Running a business isn’t always smooth sailing. Lucky admitted that his biggest early mistake was letting pride get in the way when things went wrong. Today, he understands the importance of addressing customer complaints head-on to maintain his reputation.

Sometimes, doing what’s right—not what’s easy—can make all the difference in keeping customers happy and loyal.

What’s Next?

Lucky’s looking to expand into a larger location to accommodate growing demand. With limited space for parking and operations, he’s currently eyeing properties that will give his business room to grow.

Though the future’s bright, his focus will remain the same: invest in the right tools, employees, and training to keep delivering quality service.

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Lucky’s journey proves that you don’t need endless cash or a perfect setup to launch a successful business. You just need drive, the right skills, and a willingness to grow.

So, whether you’re starting with $20,000 or $2,000, let Lucky’s story inspire you to turn your dream into reality. Want more insights from small business pros?