How To Start A Mechanic Workshop In Nigeria

How To Start A Mechanic Workshop In Nigeria | Pixabay

There are over 11 million private and commercial automobiles in Nigeria. As the number increases yearly, mechanic workshops in Nigeria benefit from the steady and ever-growing service demand; especially since automobiles require frequent maintenance, inspections, and repairs.

Every day, mechanic workshops get lots of customers looking for a way to fix a part of their vehicle, install, service, or improve the quality of engines, or to even change the look of their vehicles. Consequently, these activities invariably cause the revenue turnover rate for the mechanic business in Nigeria to be high.

However, for a mechanic workshop in Nigeria to be lucrative, it needs the right structure and mode of operation. This complete guide on how to start a mechanic workshop in Nigeria will show you key steps to take on how to start one.

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What Is A Mechanic Workshop Business About?

A mechanic workshop in Nigeria or anywhere around the world is a venture that repairs or sells parts of vehicles like cars, buses, trucks, and motorcycles. They handle complaints and requests of vehicle owners, diagnose auto-related problems, analyze and proffer solutions, and then, quote the price of a particular service before going on to make changes or correct defects.

There are several services a mechanic workshop can offer, but its primary function, anywhere in the world, is to maintain vehicles for usage. Apart from vehicle maintenance, it focuses on issues of auto malfunction. These two services have a high demand rate which makes this venture very lucrative.

Services like vehicle body repairs and spare parts sales are also ways in which a mechanic business can grow and earn more profits every day. Additionally, mechanic workshops need to deliver excellent services to retain and expand their customer base. That means exceptional customer care, services, prices, and regularly updated skills.

With the swift progression of technology, the success of the modern mechanic workshops depends on their ability to adapt and include technology in their operations. As vehicle structures continue to advance, integrating more electronic and computerized features, mechanics need to extend their knowledge base so that their customers can receive satisfactory services, remain loyal, and promote their mechanic workshops via word of mouth.

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Business Opportunities In The Mechanic Workshop Business Around The World

Here are some mechanic workshop business opportunities in Nigeria, Africa, and many other places around the world.

1). Specialty Mechanic Workshop:

Mechanic workshops that mainly repair or install specific parts of a vehicle are called specialty mechanic workshops. They specialize in fixing auto parts like glass installations, brakes, transmissions, exhaust pipes, and engine repairs.

One other type of specialty workshop business is the auto customization and modification workshop.  This opportunity involves modifying automobiles at the owner’s request or specifications. A specialty workshop changes or attaches certain parts of a vehicle to improve its performance or change its appearance. Some owners might alter their automobiles to fit a particular purpose.

There are specialty workshops that only specialize in one or two automobile brands or a particular type of vehicle. This group is usually linked to dealerships and can handle any issue regarding their specialization.

2). Vehicle Body Repair Business:

Automobile body repair business is a creative and lucrative income source for mechanics. Expert auto body mechanics earn profits by repairing dented or destroyed vehicle bodies. They also renew or change whole or certain parts of the automobiles.

The price of a service depends on the level of damage or the requirements of a client’s vehicle while the degree of collision determines the complexity of each job. Vehicle body repair workshops are always equipped with the necessary machinery and devices to fix a broad range of automobiles because of the complicated nature of the tasks.

3). Auto Parts And Servicing Business:

These are mechanic businesses which mostly deal with selling and servicing parts of automobiles—cars, buses, motorcycles, and more.

Auto spare parts trade is one of the most lucrative businesses in the world and a source of wealth and revenue for entrepreneurs in Nigeria. With some knowledge of auto mechanics, one can benefit from this business.

Some spare parts businesses also maintain or fix some parts of a vehicle like tyres, windows or fender parts.

4). Vehicles Repair Workshop:

Automobile repair workshops are businesses that are either a part of dealerships or independent franchises. Mechanic workshops identify and fix issues concerning a particular or various automobiles.

With the heavy road use and the problem of bad roads in Nigeria, this business is a necessary part of the automobile industry.

5). Automobile Refinishing Business:

This business is either a part or can be separate from the body repair mechanic workshop. Auto refinishers cater to commercial and private vehicles that have been affected by a collision. It also involves respraying automobiles to improve its appearance or change its color.

6). Vehicle Examiners:

In some parts of the world, expert auto mechanics can earn profits from sharing their knowledge regarding vehicle safety or radiation inspections. Services include measuring radiation and auto parts examinations of vehicles that require assessment.

Before giving a vehicle owner an updated inspection result, examiners identify and analyze necessary repairs to any auto parts that do not match the required standards.

See Also: How To Start An Oil And Gas Company In Nigeria: The Complete Guide

 

Facts And Benefits Of The Mechanic Workshop Business

  • Mechanic workshops in Nigeria and other countries deal with automobile repairs, servicing, maintenance and refinishing.
  • The automobile mechanic industry is evolving from pure mechanics to technology, widening its scope and necessitating an increase in Nigeria.
  • The average mechanic workshop in Nigeria and many places around the world is a profitable business due to the high number of vehicles in use.
  • The outlook for the mechanic business in Nigeria is growing stronger as the use of vehicles rise.
  • Mechanic workshops can either be independent or part of an automobile dealership.
  • Mechanic workshop business opportunities are creative and profitable.

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Types Of Mechanic Workshops

1). Dealership Mechanic Workshops:

Dealerships are vehicle distribution businesses that sell used or new cars and offer services and goods like auto repairs, maintenance, and spare parts to customers. A car dealership also processes warranty claims.

A dealership can only repair the vehicles brands that it’s linked to on a contractual basis. It is restrictive to customers who can only receive services as long as their warranty lasts. Still, customers favor dealerships because of the high-quality service they provide with their array of highly skilled technicians and sophisticated machinery.

2). Independent Mechanic Workshops:

Independent mechanic workshops are privately owned businesses with no particular brand loyalty. Most independent workshops don’t specialize in one type of mechanic services. They can branch into a franchise that covers businesses like spare part sales of different vehicle brands.

This business has a smaller but less restrictive scale of operations. It’s a much more personalized service and offers cheaper prizes. Most independent mechanic workshops fall short of providing the quality of goods and services found in a dealership despite its appealing advantages.

3). E-Mechanic Workshops:

A recent type of mechanic business is the E-mechanic workshop where auto products and repairing services are ordered online and then delivered to the customers’ doorsteps. People who are stuck somewhere due to a vehicle break down situation or those who need quick and convenient services from the comfort of their homes or offices are willing to pay for E-mechanic repairs.

Additionally, sourcing for intensive capital to start this business is unnecessary. An E-mechanic can work alone or rent a garage which lowers the costs of operations.

 

How To Start A Mechanic Workshop Business In Nigeria; A Step By Step Guide

To start a mechanic workshop in Nigeria or anywhere else, you need the right knowledge to help you build a lucrative and well-established business. That said, here is a step by step guide on how to start a mechanic workshop in Nigeria, Africa, or many other places around the world:

1). Adequate Expertise:

Knowledge is invaluable in the mechanic industry. It determines the quality of service you offer to customers. Therefore, it’s essential that you have the training, skills, and information you need for a successful outcome.

Non-experts in mechanics can partner up with an expert or hire skilled technicians. Nevertheless, having a basic knowledge of the business will be more favorable in the long run.

2). Feasibility Study and Business Plan:

Detailed and well-researched business plans can help you through each step of starting a mechanic workshop in Nigeria. Create a mechanic workshop business plan after an extensive analysis, research, and considerations.

3). Capital:

At this point, you should have a good idea of how much it cost to start and run a mechanic workshop in Nigeria of the scale you want for the first six months to one year.

The next thing is capital sourcing. If personal savings are inadequate, there is the option of obtaining loans from cooperatives or banks. A good business plan will help you get the funds you require.

If the idea of a loan is unsatisfactory, you can get a partner, silent or active, to help set up funds for the business.

3) Register Your Business:

Register your mechanic workshop with the Corporate Affairs Commission in your state, city or town to get a business license to start up and run the business. The business’ name, location, type of ownership, and services are relevant information required in registration documents.

4). Strategic Location:

Your location determines how lucrative your mechanic workshop in Nigeria would be. A great location is central, close to major roads around commercial areas. Look out for details like power supply, basic amenities and the level of competition within the area.

An overall highly trafficked place is an excellent location because it ensures steady business traffic and as a result, substantial daily income.

5). Workshop Lease:

Get a lease on a garage or an adequate space for your workshop. It should be in a great location and spacious enough to house staff, equipment, and automobiles.

If the available capital is insufficient, you can either work from home or become a mobile auto mechanic before getting a space.

6). Purchase Efficient Work Tools:

Purchase every necessary tool required for your kind of business. High-tech diagnosing, repair or refurbishing equipment should be available to ensure efficient operations.

Some relevant tools found in a mechanic workshop are;

  • Workbench with vise
  • Battery charger and jumper
  • Auto Lifts
  • Press
  • Diagnostic scanners
  • Air Compressor
  • Dial Gauge
  • Voltmeter
  • Strut Compressor
  • Bearing pullers
  • Handheld mechanic lamps
  • Micrometer
  • Transmission Jacks
  • Jack stands
  • Ring and open spanners
  • Oil Drain
  • Engine Hoist
  • Tachometer
  • Oil caddy
  • Rolling oil pans

7). Join A Trade Association:

Most, if not all businesses in Nigeria have trade associations or unions. Mechanic businesses have trade associations in different parts of the country. Become a member of a union in your local government or state to keep abreast with current information in the industry.

8). Start An Apprenticeship Or Employ Workers:

Employ skilled technicians in your mechanic workshop for more productivity and efficient service delivery. Wages might be fixed or based on hours completed. Workers should also be trained to handle customers properly.

However, it must all fit into your budget and if it does not, start an apprenticeship program. This would not be as productive initially, but you can get good assistance at little to no cost.

9). Promote Your Business:

Apart from personal recommendations, your business can benefit from promotions through the internet, social media and print media platforms. Be sure to print business cards that you can hand out to people anywhere or any time.

10). Maintain A High-Quality Service:

Whether you start out by renting a garage or mobile service delivery, nothing matters as much as the quality of service you provide. Things like great customer relations, skills and expertise will ultimately place your business at the top.

Also, offering off-site, free, or discounted service will help you retain customer loyalty.

See Also: 5 Questions To Ask Yourself Before You Quit Your Job To Start A Business

 

Challenges Of The Mechanic Workshop Business In Nigeria

Although starting a mechanic workshop in Nigeria can be lucrative depending on where it is set up or what service is run through it, there are challenges that budding entrepreneurs might encounter while running a mechanic workshop in Nigeria. Some of them are:

  • Substandard auto parts imported into the country is a challenge Nigerian mechanics have to face while trying to provide high-quality services.
  • Expensive technological equipment like diagnosing scanners and other hi-tech devices.
  • Increasing computerization of automobiles coupled with inadequate skills or training of mechanics is a challenge to most mechanic workshops in Nigeria.
  • Lack of a computer/internet based information and operations.

 

Conclusion

Starting a mechanic workshop in Nigeria can be lucrative with a good plan, excellent skills, honesty, and knowledge. There are several parts of the industry you can branch into apart from the vehicle repair mechanic business.

For instance, you could combine the vehicle repair business with auto refinishing or spare parts businesses to cover a broader market and make more profits. So, if you are searching for a great automobile-related business opportunity, this can be a good venture for you.

 

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What are your thoughts on how to start a mechanic workshop in Nigeria or Africa? Let me know by leaving a comment below.

 

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