Small collision and body repair shop

Vehicle owners paying directly, and insurance companies paying on claims. Some work comes from dealers and local fleets.

Paid per repair job based on an estimate covering labor hours, paint and parts. Insurer-approved shop programs can bring steady volume but set their own rates.

• Panel straightening, filling and refinishing
• Estimating repair cost and time
• Working with insurance adjusters
• Managing a workshop safely

• Some states require auto body shop registration or licensing, check your state's licensing board or consumer affairs office
• Air quality rules and permits for painting, plus hazardous waste handling for solvents and paint, check EPA and your state environmental agency
• Garage liability and garagekeepers insurance, plus workers' compensation once you hire
• Fire safety and ventilation requirements for the building, check with your local fire marshal
• Large upfront equipment costs and slow insurer payments can strain cash flow

Startup costs are typically estimated around $50,000 to $150,000, depending on your premises, spray booth and frame and welding equipment. Large upfront equipment costs are a key point to plan for in your budget.

Monthly revenue is typically estimated around $10,000 to $45,000, depending on your job mix, pricing and insurance work. The estimate assumes at least 40 hours a week, and slow insurer payments can strain cash flow.

Check whether your state requires auto body shop registration or licensing, plus air quality rules, painting permits and hazardous waste handling for solvents and paint. Also check garage liability and garagekeepers insurance, and fire safety and ventilation with your local fire marshal.