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Thursday, July 9, 2009

Is This a Good Time to Start a Mobile Oil Change Franchise Business in the Phoenix Area?

Many mechanics have been recently laid off in both the auto sector and the trucking industry, and they are looking for a good business to jump into. These individuals do not have a ton of money to open a $500,000 franchised Outlet of an Automotive Franchise System, but they might have enough money for a mobile franchise business such as an aftermarket auto accessory service, mobile detailing business or a mobile oil change business.

Is this a good business to start in the middle of this current recession? Perhaps, as the cost to get into the business is not too much, and thus, the financing hurdle is conquerable. Not long ago someone from Arizona asked me about this. It is my contention that a mobile oil change franchise is perhaps an unwise investment if the franchise owner only went after personal car oil changes, as even this automotive sub-sector right now is problematic.

Nevertheless, it could be a good business if the operator tried a low-cost high-volume strategy that specialized in fleet business. I would recommend getting a good education online if you are considering this, while learning to better understand all the problems and issues associated with a mobile oil change franchise outlet business model.

I've heard some horror stories about some Business Opportunities in this sector, and some of the others over the years, and I know there is competition in Tempe, Mesa, Chandler, Scottsdale, Phoenix areas, but with the downsizing of many companies, a low-cost leader could make it through the current recession if they can get their fixed costs and initial capital costs low.

Indeed, a high-cost automotive franchise may not be the right venue considering credit markets and ROI to match the salary of wherever the laid off mechanic is coming from, yet a low-cost franchise could work. Assuming a mechanic is laid-off from a Car Dealership, which canned all its mechanics due to losing its franchise with GM or Chrysler, this mobile franchise-business could be viable.

Indeed, no one is breaking speed records right now even in the trucking sector, truck sales are down, and shipping is off even worse than auto sales, they are laying off mechanics right and left too. I'd shop around, take a look at all the mobile-auto businesses available and do your homework. Please consider all this, and do your own due diligence.

Lance_Winslow

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