Operator guide · Auto & personal services
How to Start a Collision Repair Shop
Not every dent is a starter job. Map the collision work your team can quote and complete to the applicable procedures, then decide which work to refer. A small shop can build its reputation by taking a narrow scope, communicating well, and avoiding repairs that require training or equipment it does not yet have.
Before you spend on ads
What to figure out first.
Pick your first offer
Open with an appointment-based damage assessment for drivable cars, then take only work the team is equipped to handle. State clearly that photo intake is preliminary; a complete repair plan may reveal additional issues or parts needs.
Find the price floor
Estimate parts, labor, materials, and any specialist work separately. Model both gross contribution and the days before cash arrives. A stalled car awaiting a part, documented approval, or calibration can tie up labor planning and space even before it generates an invoice.
Find your first customers
Build a local damage-intake page that explains what happens after the first photos and what updates customers can expect. Create a clear education handout for local repair shops or fleets that may need an appropriate referral.
Keep delivery manageable
Track every vehicle’s current stage and blocker. Set an owner for parts checks, supplement approvals, verification and delivery updates. Do not promise a completion date before you understand the repair plan, parts availability and required specialist work.
Worked example
Run the numbers once.
Illustrative collected tickets. Direct costs include parts, materials, technician labor and specialist work, not equipment, fixed payroll overhead, rent, marketing or taxes.
- Volume (completed repair orders)
- 6
- Price each
- $2,800
- Variable cost each
- $1,850
- Gross receipts
- $16,800
- Total variable costs
- $11,100
- Contribution before overhead
- $5,700
Hypothetical inputs, not a quote or forecast. Contribution is not take-home profit. Subtract any overhead, taxes, advertising, and other expenses not included above.
A decision worth getting right
Common question.
Is an insurance referral program required to open?
No. Start with a documented target customer and track how each source pays, what administrative work it creates, and whether it fits your capacity before pursuing contracts.
Where Branch Up Works fits
Build around this work.
Branch Up could set up photo intake, estimate and approval tracking, and a work-in-progress dashboard that surfaces delayed jobs before they block more space.
For accepted operators, the funded plan can cover the agreed build and marketing in exchange for a share of attributed sales you collect. You stay the owner.