oil change business plan pdf

Oil Change Business Plan Template

Written by Dave Lavinsky

If you’re looking to create an oil change business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful oil change businesses. Our oil change business plan example below is sure to help you!

Oil Change Business Plan Example

Below is our oil change business plan template and sample plan created using our ai business plan generator :

I. Executive Summary

Company overview.

At SwiftLube Oil Service Center, we pride ourselves on providing high-quality, efficient oil change services for motorists in Orland Park, IL. Our top-of-the-line facility is designed to offer a superior customer experience with an emphasis on speed, convenience, and reliability. We understand the importance of vehicle maintenance, and our goal is to become a trusted community partner for all automotive lubrication needs. Our location in Orland Park, IL, positions us perfectly to serve a growing market of automobile owners who value their time and prefer professional service.

Success Factors

Our success is driven by several key factors, including our advanced service facility, seasoned management team, and commitment to customer satisfaction. To date, we have achieved significant milestones, such as securing a prime location, completing the initial setup of our service center, and establishing a strong relationship with suppliers. This solid foundation enables us to deliver exceptional service and positions us for future growth in the competitive automotive service industry.

Industry Analysis

The automotive oil change and lubrication industry is experiencing steady growth, driven by an increasing number of vehicles on the road and the need for regular maintenance. As vehicle ownership continues to rise, the demand for quick and convenient service centers like ours also grows. The industry’s landscape is competitive, with a mix of independent providers and franchise operations. SwiftLube Oil Service Center is well-positioned to capitalize on industry trends by offering a customer-centric approach that differentiates us from traditional service providers.

Customer Analysis

Our target customers consist of vehicle owners in Orland Park, IL, who value their time and seek convenience, efficiency, and reliability when it comes to vehicle maintenance. This demographic includes busy professionals, families, and individuals who prioritize regular vehicle care but require a service provider that can accommodate their fast-paced lifestyles. By understanding our customers’ needs and preferences, SwiftLube Oil Service Center is able to tailor services and create marketing strategies that resonate with our target audience.

Competitive Analysis

Top Competitors: – QuickOil: A regional chain offering expedited oil change services. – LubeFast: An established local provider with a strong customer base. – OilPro Service Centers: A national franchise known for its comprehensive service offerings.

Competitive Advantages: SwiftLube Oil Service Center differentiates itself through superior customer service, state-of-the-art facilities, and a strategic location that maximizes convenience for our customers. By focusing on these strengths, we are confident in our ability to compete effectively in the marketplace and establish a loyal customer following.

Marketing Plan

Our marketing plan centers around products, services, and pricing that cater to the needs of modern consumers. SwiftLube Oil Service Center offers a comprehensive range of oil change services at competitive prices, ensuring that customers receive excellent value. We’ve structured our pricing to be transparent and straightforward, allowing customers to select services without any hidden costs. Additionally, our promotional strategies aim to attract and retain customers through various channels, including online marketing, social media engagement, local partnerships, customer referral and loyalty rewards programs, direct mail, local advertising, and first-time customer discounts. These efforts are designed to build brand awareness, foster customer loyalty, and establish SwiftLube as the go-to oil change service center in Orland Park, IL.

Operations Plan

Our operations plan outlines the key processes necessary to deliver efficient and high-quality oil change services. We have established a streamlined workflow to minimize customer wait times and ensure a high turnover rate of service bays. Our milestones include finalizing the service center’s build-out, recruiting and training a skilled team, implementing a robust inventory management system, and launching our comprehensive marketing strategy to drive initial customer acquisition and retention.

Management Team

The SwiftLube Oil Service Center is led by a team of experienced professionals with extensive backgrounds in automotive services, business management, and customer service. Our management team’s expertise ensures operational excellence and a customer-first approach, positioning us for success in the competitive oil change service market.

Financial Plan

To achieve our growth objectives, SwiftLube Oil Service Center requires funding to cover the costs associated with establishing our service center, investing in top-quality equipment, and executing our marketing plan. The financial support will ensure we have the resources to build a robust operational infrastructure and market our services effectively to our target customer base.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

Welcome to SwiftLube Oil Service Center, a fresh face in Orland Park, IL, dedicated to providing top-notch oil change services to our community. As a newly established local business, we pride ourselves on filling the gap for high-quality oil change services within the area. We understand the importance of vehicle maintenance and are here to ensure your car receives the best care possible.

Our Products & Services

At SwiftLube Oil Service Center, we offer a range of oil change options tailored to meet the needs of your vehicle. Our selection includes:

Full Synthetic Oil Change: Priced at $85, our full synthetic oil provides your engine with the highest level of protection and performance, especially suited for the latest engine technologies.
Synthetic Blend Oil Change: For $35, you can opt for our synthetic blend oil, which combines synthetic and conventional base oils for better protection during a wider range of operating conditions than conventional oil.
Conventional Oil Change: At $45, our conventional oil change service offers a reliable and affordable option for customers who prefer the traditional route.

Our Location

SwiftLube Oil Service Center is conveniently located in the heart of Orland Park, IL. We are strategically positioned to serve the community of Orland Park and are committed to providing accessible and efficient service to all our customers.

Why We Will Succeed

Our confidence in the success of SwiftLube Oil Service Center comes from our solid foundation and commitment to excellence. Our founder brings valuable experience from previously running a successful oil change business. This experience, combined with our dedication to offering higher quality oil and superior service, sets us apart from the competition. We believe these factors will propel us to become the leading oil change service provider in Orland Park.

Our Journey So Far

Since our inception on January 2, 2024, SwiftLube Oil Service Center has been making strides towards establishing itself as a trusted service provider. We are incorporated as a C Corporation and have already achieved several milestones, including:

Crafting a distinctive logo that reflects our brand’s values and commitment to quality service.
Developing a unique company name that resonates with our mission and vision.
Securing an excellent location that allows us to serve our customers effectively.

These accomplishments are just the beginning of our journey, and we are excited about what the future holds for SwiftLube Oil Service Center.

III. Industry Analysis

The Oil Change industry in the United States is a thriving and lucrative market. According to a recent market research report, the industry generated a revenue of approximately $8.2 billion in 2020. This clearly indicates the significant size of the market and the opportunities it presents for businesses operating in this sector. Moreover, the market is expected to experience steady growth in the coming years, with a projected compound annual growth rate (CAGR) of 3.7% from 2021 to 2026.

Several trends in the Oil Change industry contribute to its positive outlook and bode well for SwiftLube Oil Service Center. Firstly, there is an increasing demand for convenient and efficient oil change services due to the busy lifestyles of consumers. SwiftLube’s focus on providing quick and hassle-free oil changes aligns perfectly with this trend, positioning the company as a preferred choice for customers in Orland Park, IL. Additionally, there is a growing emphasis on environmental sustainability, leading to a rising demand for eco-friendly oil change solutions. SwiftLube’s commitment to using environmentally friendly products and practices gives them a competitive edge in the market.

Furthermore, the rising average age of vehicles in the United States is another positive trend for SwiftLube Oil Service Center. As vehicles age, they require more frequent oil changes and maintenance, creating a steady stream of customers for oil change service providers. With the number of older vehicles on the road expected to increase in the coming years, SwiftLube can capitalize on this trend by offering reliable and affordable oil change services to meet the needs of these customers. By staying attuned to industry trends and providing exceptional service, SwiftLube Oil Service Center is well-positioned to thrive in the growing Oil Change industry.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

SwiftLube Oil Service Center will target a diverse clientele, with a primary focus on local residents of Orland Park. The business will cater to individuals in need of quick and efficient oil change services for their personal vehicles. Local residents are likely to become repeat customers due to the convenience and quality of service offered, which will be designed to ensure their vehicles are maintained in line with manufacturer recommendations and local environmental standards.

The center will also attract customers who value time-saving services. Busy professionals and parents who have tight schedules and cannot afford long wait times at traditional service stations will be a key demographic. SwiftLube will tailor its services to accommodate these customers by offering quick turnaround times without compromising on the thoroughness of the service provided.

In addition to serving the immediate needs of personal vehicle owners, SwiftLube Oil Service Center will target local small business fleets. This segment requires regular maintenance to keep their operations running smoothly and will benefit from SwiftLube’s efficient service model. The center will offer customized maintenance packages to meet the specific needs of these businesses, ensuring their vehicles spend less time in the shop and more time on the road.

Customer Needs

SwiftLube Oil Service Center can meet the demand for high-quality oil, ensuring that residents in the area have access to top-notch products that can extend the lifespan of their vehicles and improve engine performance. Customers expect a reliable service that not only changes their oil but also uses products that provide maximum protection against wear and tear. The provision of premium oil options caters to those who are conscientious about maintaining their vehicle in peak condition.

The center also recognizes the value of convenience and efficiency in today’s fast-paced world. Customers can enjoy swift and professional oil change services that respect their time constraints, minimizing the disruption to their daily schedule. SwiftLube’s streamlined processes and attentive staff ensure a quick turnaround without compromising on service quality, meeting the needs of those who prioritize efficiency in vehicle maintenance.

Additionally, SwiftLube offers a customer-centric approach that includes transparent communication and personalized service. Customers have the assurance of clear explanations regarding service options and benefits, allowing them to make informed decisions about their vehicle’s care. This focus on customer education and tailored services fosters trust and satisfaction, fulfilling the need for a dependable and insightful oil change provider.

V. Competitive Analysis

Direct competitors.

SwiftLube Oil Service Center’s competitors include the following companies:

Midwest Auto Tops & Upholstery

Midwest Auto Tops & Upholstery specializes in providing auto upholstery services, convertible top repair and replacement, and custom interior work for vehicles. They also offer a range of auto customizing services. Their price points vary depending on the complexity and materials used in the services provided.

While specific revenue figures are not publicly disclosed, the nature of their services suggests a business model that can cater to both individual vehicle owners and commercial clients. Midwest Auto Tops & Upholstery operates out of Orland Park, IL, serving customers within the region and potentially beyond, considering the specialized nature of their services.

Key strengths include their expertise in upholstery and customization, which attracts customers looking for specialized services beyond standard oil changes. However, their focus on upholstery and custom interiors can be a weakness when competing with businesses providing a wider range of automotive maintenance services.

Outlier Auto

Outlier Auto provides a variety of automotive services, which may include oil changes, maintenance services, and performance upgrades. Their price points are competitive, aiming to offer services that meet various customer budgets.

They generate revenue from a diverse array of services and have established a presence in the Orland Park area. Outlier Auto targets car enthusiasts and owners interested in performance and customization, as well as everyday drivers seeking reliable maintenance services.

Their key strengths lie in their ability to offer a broad range of services and cater to a diverse customer base. However, their focus on performance upgrades can be seen as a weakness for customers solely interested in routine vehicle maintenance.

Checkpoint Auto

Checkpoint Auto is another competitor, offering general automotive repair services, which likely include oil changes, brake services, and engine diagnostics. Their pricing strategy is designed to be affordable to attract a broad customer segment.

The company’s revenues come from a steady stream of repair and maintenance jobs. Checkpoint Auto operates within the Orland Park area, serving local residents and those from surrounding communities.

A key strength of Checkpoint Auto is their comprehensive service offerings, which can make them a one-stop-shop for customers’ automotive needs. However, the generalist approach may result in less specialization, which could be a weakness when competing with niche service providers.

Competitive Advantages

At SwiftLube Oil Service Center, we understand that car maintenance is more than just a chore – it’s an essential part of ensuring the longevity and reliability of your vehicle. That’s why we take pride in offering not just any oil, but higher quality oil that gives our customers the peace of mind that their engines are running at their best. Our commitment to quality extends beyond our products to the service we provide. We believe in treating every customer with the utmost respect and attention to detail, ensuring they leave not only satisfied but also confident in the performance of their vehicle.

Moreover, our technicians are highly trained and equipped with the latest automotive service technology, which allows us to provide efficient and accurate oil changes. We stay abreast of industry trends and innovations, continually improving our services to exceed the evolving needs of our customers. Additionally, our service center is designed for customer comfort and convenience, with a focus on providing a swift yet thorough service experience. We are not just changing oil; we are fostering trust and building relationships with our customers by being a reliable partner in their vehicle’s maintenance.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

SwiftLube Oil Service Center provides a range of oil change services to meet the varied needs of their customers. One of their premium offerings is the Full Synthetic Oil Change , which is priced at an average of $85 . This service is ideal for modern engines and provides superior performance and protection, ensuring longer intervals between oil changes.

For those seeking a cost-effective solution that still offers enhanced engine protection and performance benefits over conventional oils, SwiftLube offers a Synthetic Blend Oil Change . This service combines synthetic and conventional motor oils to offer a middle-ground solution, balancing performance with affordability, and is available at an average price of $35 .

Customers can also opt for the Conventional Oil Change service, which is a staple for many vehicles with traditional engine designs. This service is offered at an average price of $45 and is a good choice for customers looking for reliable engine lubrication and protection at a more economical price point.

SwiftLube Oil Service Center prides itself on delivering high-quality service and customer satisfaction. Their team of skilled technicians ensures that every oil change is performed efficiently and effectively, using only the best products to keep customers’ vehicles running smoothly.

Promotions Plan

At SwiftLube Oil Service Center, we understand the importance of effective promotion to attract and retain customers. Our comprehensive promotional strategy encompasses a variety of methods to ensure maximum visibility and customer engagement.

Online Marketing

Online marketing is a cornerstone of our promotional efforts. SwiftLube will leverage the power of internet marketing to reach a wide audience. Our website will feature easy navigation and online appointment scheduling, making it convenient for customers to engage with our services. Search engine optimization (SEO) will ensure that SwiftLube appears prominently in search results when potential customers are looking for oil change services in Orland Park, IL.

Social media platforms such as Facebook, Instagram, and Twitter will serve as critical channels for building brand awareness and fostering community engagement. Regular posts, promotional offers, and customer testimonials will keep SwiftLube top-of-mind for our audience. Additionally, targeted online advertising will place SwiftLube ads on relevant websites and search result pages to attract potential customers.

Local Partnerships and Community Involvement

SwiftLube will engage in local partnerships and sponsor community events to enhance our local presence. By collaborating with nearby businesses and participating in community activities, we will build a strong local brand image and attract customers who value community-oriented businesses.

Customer Referral Program

A customer referral program will incentivize existing customers to refer friends and family to SwiftLube. Offering discounts or free services to customers who successfully refer new clients will generate word-of-mouth promotion and help expand our customer base.

Loyalty Rewards Program

SwiftLube will implement a loyalty rewards program to encourage repeat business. Customers who enroll in the program will accumulate points for each service, which they can redeem for discounts on future visits or complimentary services. This strategy will not only retain existing customers but will also attract new ones seeking value and recognition for their loyalty.

Direct Mail and Local Advertising

SwiftLube will utilize direct mail campaigns to reach local residents with special offers and reminders for oil change services. Local advertising in newspapers, radio, and community bulletins will complement our direct mail efforts, ensuring that SwiftLube remains visible in the local area.

First-Time Customer Discounts

To specifically target new customers, SwiftLube will offer first-time customer discounts. This promotional tactic will provide an immediate incentive for new customers to try our services at a reduced cost, with the aim of converting them into loyal patrons.

By implementing these promotional methods, SwiftLube Oil Service Center expects to establish a strong market presence and attract a steady flow of customers seeking reliable and efficient oil change services in Orland Park, IL.

VII. Operations Plan

Our Operations Plan details:

The key day-to-day processes that our business performs to serve our customers
The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of SwiftLube Oil Service Center, there are several key day-to-day operational processes that we will perform:

Greet customers promptly and courteously as they enter the service center.
Register customer details and service requirements in the management system.
Conduct initial assessment to determine the customer’s vehicle oil change needs and any additional service requests.
Provide customers with an estimated wait time and service cost.
Perform oil changes and any additional services such as filter replacements or fluid top-offs.
Ensure all services adhere to established safety and quality standards.
Monitor and maintain inventory levels of oil, filters, and other necessary supplies.
Order new supplies in a timely manner to avoid any service disruptions.
Regularly inspect and maintain service equipment to ensure operational efficiency and safety.
Schedule and perform preventive maintenance to avoid unexpected equipment failure.
Advise customers on the importance of regular oil changes and vehicle maintenance.
Answer any customer questions regarding their vehicle’s service needs.
Process transactions accurately and issue receipts to customers upon service completion.
Handle cash, credit/debit card, and other forms of payment.
Maintain a clean and organized work environment to ensure safety and a positive customer experience.
Dispose of used oil and other waste products in an environmentally responsible manner.
Contact customers to gather feedback on their service experience and address any concerns.
Remind customers of upcoming service dates and offer promotions or discounts to encourage repeat business.
Generate daily reports on sales, services performed, and customer visits.
Analyze data to identify trends, forecast demand, and improve operational efficiency.
Schedule staff shifts to ensure adequate coverage during operating hours.
Provide ongoing training to staff to improve service quality and efficiency.
Implement local marketing strategies to attract new customers and retain existing ones.
Update promotional materials and maintain online presence including website and social media accounts.

SwiftLube Oil Service Center expects to complete the following milestones in the coming months in order to ensure its success:

Secure a strategic location in Orland Park, IL, with high visibility and accessibility for potential customers.
Obtain all necessary permits and licenses to operate an oil change service center in the local jurisdiction.
Build out or retrofit a service center facility that is equipped with the necessary tools and technology to offer efficient and high-quality oil change services.
Launch SwiftLube Oil Service Center with a grand opening event to generate local interest and attract initial customers.
Implement a robust marketing and advertising campaign to create brand awareness and drive traffic to the service center.
Hire and train a team of skilled technicians and customer service staff to provide exceptional service and build customer loyalty.
Establish partnerships with suppliers for high-quality oil and filter products at competitive prices.
Develop a customer loyalty program and referral incentives to encourage repeat business and word-of-mouth marketing.
Increase operational efficiency and reduce wait times to enhance customer satisfaction and throughput.
Achieve the milestone of reaching $15,000/month in revenue, ensuring the business is on a path towards profitability and long-term success.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

SwiftLube Oil Service Center management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

David Kim, CEO

At the helm of SwiftLube Oil Service Center is David Kim , the CEO with a proven track record in the oil change industry. His previous experience of running an oil change service has endowed him with invaluable insights into the operational, financial, and customer service aspects of the business. David’s history of success is a testament to his strategic vision, leadership, and ability to drive growth while maintaining high standards of service. His role at SwiftLube is pivotal, as he leverages his past experiences to guide the company towards achieving lasting success in a competitive market.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, SwiftLube Oil Service Center needs $423,000 in funding. Key uses of this funding will be as follows:

Financial Projections

financial projection oil change business plan

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, what is an oil change business plan.

An oil change business plan is a document that outlines the strategies you have developed to start and/or grow your oil change business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your oil change business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.

Why You Need a Business Plan for your Oil Change Business

A business plan is required if you are seeking funding for your oil change business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, an oil change business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.

We earn commissions if you shop through the links below. Read more

Oil Change Business

Back to All Business Ideas

How to Start a Profitable Automotive Oil Change Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 7, 2022

How to Start a Profitable Automotive Oil Change Business

Investment range

$119,550 - $239,100

Revenue potential

$218,000 - $624,000 p.a.

Time to build

Profit potential

$44,000 - $125,000 p.a.

Industry trend

Critical elements to remember when establishing your oil change business:

Choose a location — Select a high-traffic location with adequate space for service bays, a waiting area, and parking. Ensure it is easily accessible for customers.
Service equipment — Invest in high-quality equipment necessary for oil changes, such as lifts, oil drain pans, filter wrenches, air compressors, and diagnostic tools.
Oil and filters — Source a variety of oils (conventional, synthetic, high-mileage) and filters from reputable suppliers to meet customer preferences and vehicle requirements. Ensure you have a reliable inventory management system in place.
Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
Service variety — Offer a range of oil change services to cater to different customer needs, such as conventional, synthetic, and high-mileage oil changes. Ensure the quality and consistency of your services to build a loyal customer base.
Website and online presence — Create a professional website showcasing your services, pricing, promotions, and contact information. Get listed on Google Business and Yelp, and encourage positive reviews.
Partnerships — Build relationships with local businesses, car dealerships, and fleet operators to generate referrals and collaborate on promotions and events.

Interactive Checklist at your fingertips—begin your automative oil change business today!

You May Also Wonder:

Is an oil change business profitable?

Oil change businesses can be extremely profitable. You’ll need to have a good location, do high-quality work, and provide superior customer service so that your business stands out in a competitive market.

How can I learn to be an oil change technician?

You can find a trade school near you and go through a program. Alternatively, you could work at any quick lube franchise that offers training programs to gain some hands-on experience.

How do I hire and train qualified technicians for oil change services?

To hire and train qualified technicians for oil change services, start by advertising job openings on relevant platforms and conducting thorough interviews to assess candidates’ technical skills and experience. Develop a comprehensive training program that covers safety protocols, proper oil change procedures, equipment usage, and customer service skills.

Can I offer additional automotive services alongside oil changes?

Identify the demands and preferences of your target customers and determine which services would complement oil changes effectively, such as tire rotations, filter replacements, fluid checks, and basic vehicle maintenance. Ensure you have qualified technicians with the necessary skills and equipment to perform these additional services efficiently.

How can I differentiate my oil change business from competitors in the market?

Offer competitive pricing and promotions to attract and retain customers, and highlight the quality of the products and equipment you use. Emphasize your commitment to transparency, trust, and building long-term relationships with customers. Additionally, consider leveraging technology by offering online appointment booking, reminders, and digital customer engagement to provide a seamless and convenient experience.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an oil change business has pros and cons to consider before deciding if it’s right for you.

Good Money – Can do a lot of 10-minute oil changes in one day
Large Market – Demand is constant
Valuable Service – Oil changes prevent serious car failures
High Startup Costs – A space with car bays is expensive
Saturated Market – Compete with established oil change outlets

Oil change industry trends

Industry size and growth.

Industry size and past growth – The US oil change industry was worth $7 billion in 2021 after modest growth the previous five years.(( https://www.ibisworld.com/united-states/market-research-reports/oil-change-services-industry/ ))
Growth forecast – The US oil change industry is projected to continue to grow for the next five years.
Number of businesses – In 2021, 25,455 oil change businesses were operating in the US.
Number of people employed – In 2021, the US oil change industry employed 76,363 people.

Trends and challenges

Trends in the oil change industry include:

As people start getting back out after the pandemic and driving their cars, demand for oil changes is expected to increase.
The trend in the industry is toward synthetic oils, which are more eco-friendly and increase fuel efficiency.

Challenges in the oil change industry include:

Emergence of electric vehicles may soon threaten the oil change industry.
Leading franchises like Valvoline Instant Oil Change, Jiffy Lube and Grease Monkey are very difficult for new oil change businesses to compete with.

Demand hotspots

Most popular states – The most popular states for lube technicians are Iowa, New Jersey, and Colorado.(( https://www.zippia.com/lube-technician-jobs/best-states/#iowa ))
Least popular states – The least popular states for lube technicians are Hawaii, New Mexico, and Florida.

What kind of people work in oil changes?

Gender – 6.3% of lube technicians are female, while 93.7% are male.(( https://www.zippia.com/lube-technician-jobs/demographics/ ))
Average level of education – The average lube technician is high school educated.
Average age – The average lube technician in the US is 40.4 years old.

How much does it cost to start an oil change business?

Startup costs for an oil change business range from $106,000 to $240,000. Costs include garage space rental, lifts and bays, equipment, and an inventory of oils and filters.

If you don’t know how to perform oil change services, you can find a trade school near you and go through a program. Alternatively, you could work at any quick lube franchise that offers training programs to gain some hands-on experience.

You’ll need a handful of items to successfully launch your oil change business, including:

Bays and lifts
Socket sets
Impact guns
Oil filter wrenches
Oil catches
Inventory of oil and other fluids such as transmission fluid
Inventory of oil and air filters

How much can you earn from an oil change business?

The average price for an oil change is about $60. Your profit margin after materials, labor, and overhead should be about 20%.

In your first year or two, you could do 70 oil changes a week, bringing in $218,000 in annual revenue. This would mean nearly $44,000 in profit, assuming that 20% margin. As your brand gains recognition and you get repeat business and referrals, you could do 200 oil changes a week. With annual revenue of $624,000, you’d make a fantastic profit of $125,000.

What barriers to entry are there?

There are a few barriers to entry for an oil change business. Your biggest challenges will be:

Funding the high startup costs
Grabbing market share from the big players

Related Business Ideas

How to Start an Auto Repair Shop in 13 Steps

Shine on: How to Start a Car Detailing Business

How to Start a Vehicle Wrapping Business in 13 Steps

Step 2: hone your idea.

Now that you know what’s involved in starting an oil change business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research oil change businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile oil change business or a 10 minute oil change business.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as oil changes using synthetic motor oil or fleet services for trucking companies.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

In addition to oil changes, you’ll want to service all vehicle fluids and change filters. You can also offer other replacement parts such as lights or windshield wipers. You could also do tire balancing and other basic vehicle services.

How much should you charge for oil changes?

The average price for an oil change is about $60. Check prices in your area to make sure you’re competitive. After costs for materials, labor, rent, and overhead, you should aim for a profit margin of about 20%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to include sites like TikTok, Instagram, Facebook, and LinkedIn.

Where? Choose your oil change shop location

Location is key when starting an oil change business. You’ll want to choose a spot that’s visible and accessible, with high traffic volume and easy parking for customers.

Convenience is key in this industry, so aim for a location that’s near major roads or highways, and, ideally, within a commercial area with other automotive businesses. It’s also important to consider the size and layout of the space. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Oil Change Station Business Name

Here are some ideas for brainstorming your business name:

Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “oil change” or “quick oil change”, boosts SEO
Name should allow for expansion, for ex: “Jim’s Oil Change Center” over “Jim’s Motorcycle Oil Change”
A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Oil Change Business Plan

Here are the key components of a business plan:

Executive Summary: A brief overview of your oil change business, highlighting its service offerings, target market, and growth objectives.
Business Overview: Description of your business focusing on providing quick, reliable oil change services and basic vehicle maintenance.
Product and Services: Details of services such as oil changes, filter replacements, fluid checks, and other minor automotive maintenance.
Market Analysis: Analysis of the local automotive service market, customer demand patterns, and vehicle population.
Competitive Analysis: Evaluation of local competitors, their services, pricing, and customer service strategies.
Sales and Marketing: Strategy for attracting customers through promotional offers, local advertising, and establishing a strong online presence.
Management Team: Information about the key individuals running the business, their experience in automotive services, and management skills.
Operations Plan: Outline of daily operations including service procedures, customer management, and inventory control.
Financial Plan: Financial projections covering startup costs, operating expenses, pricing strategy, and profitability analysis.
Appendix: Additional documents like supplier agreements, equipment lists, and detailed service descriptions.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to oil change businesses.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your oil change business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an oil change business.

Step 8: Apply for Licenses/Permits

Starting an oil change business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your oil change business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Shopmonkey , ARI , or Mitchell1 , to manage your scheduling, inventory, workflows, and invoicing.

Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

Strategic Partnerships with Auto Shops: Collaborate with local auto repair shops or car dealerships to establish referral programs, offering mutual benefits and creating a network of customers in need of oil changes.
Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
Frequent Customer Loyalty Programs: Implement loyalty programs that reward customers for repeat business, offering discounts, free services, or exclusive deals after a certain number of oil changes.
Community Sponsorships and Events: Sponsor local events or sports teams to increase brand visibility, and participate in community gatherings to engage with potential customers directly.
Mobile Oil Change Services: Offer convenient on-site oil change services for busy professionals or individuals who prefer the convenience of having their oil changed at their location.
Educational Workshops and Seminars: Host workshops or seminars on basic car maintenance and the importance of regular oil changes, positioning your business as an expert in automotive care.
Seasonal Promotions and Packages: Introduce seasonal promotions or bundled packages, such as winterization specials or summer road trip packages, to attract customers during specific times of the year.
Referral Programs with Local Businesses: Establish referral partnerships with other local businesses, like car washes or tire shops, encouraging cross-promotion and expanding your customer base.
Mobile App for Appointment Scheduling: Develop a user-friendly mobile app that allows customers to easily schedule and manage their oil change appointments, enhancing convenience and customer satisfaction.
Social Media Contests and Engagement: Run engaging social media contests, share informative content about car maintenance, and encourage user-generated content to create a buzz around your oil change business.
Vehicle Fleet Maintenance Contracts: Target businesses with vehicle fleets and offer customized maintenance contracts, providing cost-effective solutions for companies in need of regular oil changes for their vehicles.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your oil change business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your oil change business could be:

Express oil changes with such great service you’ll want to stay longer!
Let our oil pros get you back on the road in a snap
Full-service oil changes and engine check-ups

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an oil change business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in oil changes for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in oil changes. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an oil change business include:

Oil Change Technicians – perform oil change services
General Manager – staff management, ordering, accounting
Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run an Oil Change Business – Start Making Money!

Oil changes may be a necessary evil, but they are indeed necessary, which means demand is big and constant. It’s also increasing. You could ride that growth with your own oil change business. If you have a passion for cars and for helping people, there’s no reason why you couldn’t grow your business into a major national franchise!

You’ve got the business knowledge you need now, so it’s time to roll up your sleeves and launch your successful oil change business.

Subscribe to Our Newsletter

Featured resources.

16 Best Truck Business Ideas for Steady Income

David Lepeska

Published on December 4, 2022

Do you own a truck, or are thinking about buying one, and wondering whether it could help you launch a successful business? You’ve come to the ...

57 In-Demand Service Business Ideas You Can Launch Today

Published on December 1, 2022

The services sector is undoubtedly the biggest economic sector in the US as it accounts for nearly 70% of the country’s gross domestic product. It ...

13 Business Ideas for Mechanical Engineers

Published on September 4, 2022

Mechanical engineers are often problem solvers and innovators, which are skills that can be crucial to entrepreneurial success. If you’re amec ...

No thanks, I don't want to stay up to date on industry trends and news.