How to Start a Windshield Repair Business
The windshield repair industry offers many valuable opportunities to entrepreneurs who are detail-oriented and comfortable working with cars. Learning to repair windshields is a relatively easy skill to acquire, meaning that someone who hasn’t ever repaired a windshield before could still go into business quickly.
Starting up a windshield repair business of your own is also highly affordable, making it a great opportunity for many entrepreneurs. An auto glass repair business allows for flexibility in your schedule and can even be run on a part-time or full-time basis.
Read on to see what’s involved with this type of business and to determine if this might be the right opportunity for you.
Business Overview
Windshield repair businesses specialize in repairing (and sometimes replacing) windshields that have been chipped or cracked. These businesses are often mobile businesses that will travel to customers since driving a car with a damaged windshield can make that damage worse. A business’ van is outfitted with everything needed to make repairs in a customer’s driveway or a parking lot.
While a business can offer to repair a crack in a windshield, many also cross over into windshield replacement, offering a full-service option if the damage is too severe to be repaired. Some businesses also offer complementary services, like window tinting, repairing rock chips, headlight restoration, or auto detailing.
How to Start a Windshield Repair Business
The windshield repair industry offers many valuable opportunities to entrepreneurs who are detail-oriented and comfortable working with cars. Learning to repair windshields is a relatively easy skill to acquire, meaning that someone who hasn’t ever repaired a windshield before could still go into business quickly.
Starting up a windshield repair business of your own is also highly affordable, making it a great opportunity for many entrepreneurs. An auto glass repair business allows for flexibility in your schedule and can even be run on a part-time or full-time basis.
Read on to see what’s involved with this type of business and to determine if this might be the right opportunity for you.
Business Overview
Windshield repair businesses specialize in repairing (and sometimes replacing) windshields that have been chipped or cracked. These businesses are often mobile businesses that will travel to customers since driving a car with a damaged windshield can make that damage worse. A business van is outfitted with everything needed to make repairs in a customer’s driveway or a parking lot.
While a business can offer to repair a crack in a windshield, many also cross over into auto glass replacement, offering a full-service option if the damage is too severe to be repaired. Some businesses also offer complementary services, like window tinting, repairing rock chips, headlight restoration, or auto detailing.
When starting an auto glass repair company, do careful research into any competing businesses that already exist in the area. If you’re in an area with a well-established business that multiple car insurance companies already refer their customers to, it can be difficult to break into the industry locally. You may find yourself having to extend your service area repeatedly to bring in enough customers, which will eat into your profits and time.
If you are competing against existing companies, you’ll need to heavily focus on your marketing. Establishing an active online presence with a website that ranks well in search engines is important. It’s also helpful to build up your online business reviews so that customers who search for your business will instantly see that you do good work and have satisfied customers.
Becoming a direct repair vendor for insurance companies can be lucrative and provide consistent work. Signing up as a vendor will be tedious as finding the contact for each insurance company can be difficult. You can also begin networking with local insurance agents who can help show what the claims process looks like on their end and may be able to help make the connections to become a vendor.
Industry Summary
IBIS World reports that the auto windshield repair industry experienced growth from 2013 through 2018. In 2018, the industry brought in $5 billion in revenue. There were 18,612 businesses in operation in 2018, and they employed 44,360 people.
Multiple factors affect the industry’s profitability, and they can affect it in different ways. As per capita disposable income increased during that five-year period, more people were able to buy new cars. With more cars on the road, demand for windshield repair increases, but there’s another side to this trend. As consumers have more disposable income, they may choose to buy brand-new vehicles rather than used ones. These newer vehicles are now made with laminated glass, which is less likely to break under an impact, resulting in fewer repairs. Though multiple factors affect industry demand, IBIS World predicts that revenue for the windshield repair industry will continue to increase.
Industry Trends
The windshield repair industry is often affected by the evolving trends when it comes to auto glass manufacturing and use. According to Glass America, windshield repair companies need to keep pace with these trends so that they can still service customers’ new cars. Advanced Driver Assistance Systems have become more popular, and these systems help drives to avoid accidents by alerting drivers or stopping the car when an obstacle is in the path. These systems are usually positioned on windshields, so repair technicians need to understand how to repair or replace windshields in vehicles with this technology.
Smart glass is another current trend. Windshields made of smart glass are more durable and stronger than traditional windshield glass. Windshield repair technicians need to be trained and knowledgeable when replacing smart glass products.
New and evolving technology poses many benefits for drivers, but windshield repair businesses need to constantly stay aware of and receive training in working with these new types of technology. If a business lags behind, it may find that it has to turn away customers who have these newer cars with advanced technology.
Related Industries
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Target Market
Most windshield repair businesses market to vehicle owners who need windshield repair or replacement. In some cases, businesses will also market to commercial vehicle owners. A mobile windshield repair business’ target market includes customers who are busy or who are looking for the convenience of a come-to-you service. Some businesses build relationships with auto insurance providers, so they refer their customers to these windshield repair businesses.
Industry Summary
IBIS World reports that the auto windshield repair industry experienced growth from 2013 through 2018. In 2018, the industry brought in $5 billion in revenue. There were 18,612 businesses in operation in 2018, and they employed 44,360 people.
Multiple factors affect the industry’s profitability, and they can affect it in different ways. As per capita disposable income increased during that five-year period, more people were able to buy new cars. With more cars on the road, demand for windshield repair increases, but there’s another side to this trend. As consumers have more disposable income, they may choose to buy brand-new vehicles rather than used ones. These newer vehicles are now made with laminated glass, which is less likely to break under an impact, resulting in fewer repairs. Though multiple factors affect industry demand, IBIS World predicts that revenue for the windshield repair industry will continue to increase.
Industry Trends
The windshield repair industry is often affected by the evolving trends when it comes to auto glass manufacturing and use. According to Glass America, windshield repair companies need to keep pace with these trends so that they can still service customers’ new cars. Advanced Driver Assistance Systems have become more popular, and these systems help drives to avoid accidents by alerting drivers or stopping the car when an obstacle is in the path. These systems are usually positioned on windshields, so repair technicians need to understand how to repair or replace windshields in vehicles with this technology.
Smart glass is another current trend. Windshields made of smart glass are more durable and stronger than traditional windshield glass. Windshield repair technicians need to be trained and knowledgeable when replacing smart glass products.
New and evolving technology poses many benefits for drivers, but windshield repair businesses need to constantly stay aware of and receive training in working with these new types of technology. If a business lags behind, it may find that it has to turn away customers who have these newer cars with advanced technology.
Related Industries
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Target Market
Most windshield repair businesses market to vehicle owners who need windshield repair or replacement. In some cases, businesses will also market to commercial vehicle owners. A mobile windshield repair business’ target market includes customers who are busy or who are looking for the convenience of a come-to-you service. Some businesses build relationships with auto insurance providers, so they refer their customers to these windshield repair businesses.
Checklist for Starting a Windshield Repair Business
If you’re thinking about starting a windshield repair business, it’s important to do your research first. Here is a checklist to help you get started.
Step 1:Â Write a Business Plan
After coming up with the idea, the next step in starting your business should be to write a business plan. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.
Related: How to write a business plan
Step 2:Â Form a Business Entity
A business entity (also referred to as a business structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.
When deciding on which business entity is best for a windshield repair business, it normally comes down to the sole proprietorship and Limited Liability Company.
A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay.
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The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.
That leaves the sole proprietorship and LLC.
The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is that the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.
Related: Guide to forming your LLC
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Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right.
Some popular LLC formation services include:
IncFile - $0 plus state fees & free registered agent for 1 year!
IncAuthority - $0 plus state fees & free registered agent the first year!
ZenBusiness - $49 plus state fees & free registered agent for 1 year!
Step 3:Â Name the Business
Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.
Related: Tips and ideas for naming a windshield repair business
Step 4: Select your Location
Most windshield repair businesses are mobile, operating out a van, but if a business expands to the point of hiring multiple technicians and running multiple vans, it may be necessary to rent a garage or warehouse space. Rent costs will vary depending on the location and the amount of space needed.
Depending on the climate where you live, your ability to work on vehicles outdoors can be limited in the winter or during periods of rain unless customers have access to a garage. In areas where temperatures are very cold in the winter or where the winters see a lot of precipitation, having your own garage space that customers can travel to can help keep you working when the weather isn’t cooperating. While customers often love the convenience of a service that will come to them, they may be willing to travel to you if it means that they can get their windshield repaired sooner.
Related:Â Choosing a business location
Step 5:Â Apply for Business Licenses and Permits
There are no licenses required specifically for windshield repair businesses; however, there are general business registrations to be aware of. Requirements vary by location, but some of the more common ones include a business license, sales tax permit, and Employer Identification Number.
Related:Â Common business licenses, permits, and registrations by state
Step 6:Â Find Financing
Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a windshield repair business is another. Funding to start a windshield repair business can be difficult. In order to get a loan, the borrower(s) will need to have good credit and be able to personally invest 15-25% towards the total start-up costs.
Related:Â Finding the money to start a business
Step 7:Â Open a Business Bank Account
Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
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Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.
Step 8:Â Get your Marketing Plan in Place
Ongoing marketing will help a business expand its customer base, especially since customers in this industry tend to be only occasional returning customers. Used car dealerships, body shops, and auto insurance companies are great to market to as well.
Marketing techniques may include social media marketing, print advertising, radio advertising, and online advertising.
Related:Â Low-cost ideas to market a new business
Every business is going to need a logo. Make a professional logo in no time with the free logo makers from BrandCrowd and Canva.
Step 9:Â Get Business Insurance
There are several types of insurance to consider when starting a windshield repair business. A few of these include:
– General liability insurance protects the business if a customer is ever injured by the business’ work.
– Workman’s comp insurance helps to cover expenses like medical bills or lost wages that can occur if an employee is ever injured while on the job.
– Commercial auto insurance protects the business from financial loss if a business vehicle is ever involved in an accident.
The cost to insure a windshield will vary due to many factors such as where the business is located and the value of its vehicle and equipment. To get the best idea of what to budget for insurance costs, request quotes from multiple providers. Then, compare those quotes, paying attention to variables like coverage limits and exclusions, premiums, and deductibles.
Step 10:Â Hire Employees
While a business owner may staff their business themselves during its startup years, if that business grows, it may be necessary to hire additional technicians to help keep up with the demand. According to PayScale, auto glass technicians earn an average salary of $49,132 per year. Salaries range from $28,000 for entry-level technicians all the way up to $68,000 for late-career technicians with extensive experience.
In addition to budgeting for salary expenses, the payroll budget also needs to include workers comp insurance, paid time off, and health insurance contributions for employees.
Related:Â Hiring your first employee
Step 11:Â Set up an Accounting System
Setting up an accounting system is critical to the long-term success of your business.
Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.
StartingYourBusiness.comHow much does it cost to start a windshield repair business?
The initial investment for a windshield repair business is relatively low. Plan to spend about $20,000 initially to get a business up and running. The higher end of the startup costs would include a van and inventory if you also plan to offer windshield replacement.
Some common startup costs include:
– Van and renovation
– Repair supplies
– Inventory, including replacement windshields
– Branding materials, including a logo, uniforms, and van signage
How much can a windshield repair business owner make?
Windshield repair businesses can be highly profitable. Trinsic Glass states that windshield repairs average about $50 each, and additional repairs to that same windshield can add $10 to $15 to each appointment. By those figures, a business that makes five repairs each day would earn about $65,000 in income. With an out-of-pocket cost per repair of about $1, most of that would be profit.
What skills are needed to run a windshield repair business?
While a windshield repair business owner doesn’t need to have a business degree, certain skills and experiences can help make that business a success.
Automobile knowledge. General knowledge of automobiles is helpful in this industry. Awareness of current automobile glass technology trends can also help a business owner keep their training and service offerings up to date.
Experience with glass repair. A business owner who has experience in automobile glass repair will understand the challenges of this job.
Physical strength. Windshield repair technicians need to be physically strong, and they’ll need to be able to repeatedly lift and position windshields by themselves.
Networking talents. A business owner who is a skilled networker will be able to capitalize on relationships with auto insurance companies, local garages, and mechanics, potentially driving customer referrals and building the repair business’ customer base.
Customer service skills. Good phone and customer service skills can help a business owner to make a great first impression. Arriving at appointments on time is also important to building the business’ reputation.
Attention to detail. A business owner needs to do quality work, both for the customer’s safety and for the windshield repair business’s reputation.
Are there grants to start a windshield repair business?
It’s extremely rare to find a grant to start a windshield repair business. If you search for business grants, you will come across a lot of scams and misinformation. Occasionally an organization will offer grants to start a business, however, be skeptical and don’t provide any sensitive personal information or pay money to get more information.
Legitimate federal grants can be found at Grants.gov, and you can check on your state’s economic development office to see if they have any grants available.
What is the NAICS code for a windshield repair business?
The NAICS code for a windshield repair business is 811122.
The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.
Related: What is a NAICS code?
Resources:
Independent Glass Association
National Windshield Repair Association (NWRA)
