Mobile Lube and Oil Service

Two partners contacted their local SBDC to obtain assistance with the start-up of a mobile lube and oil service business. They have never been in business for themselves, but they do have education and financial and management experience. One partner has an MBA and worked in a boutique investment firm and a large commercial banking firm. The other partner has a degree in Business Administration and was a pilot in the Navy and is now a commercial airline pilot. He has supervisory experience and experience with his brother’s automotive repair business.

The concept of business is to obtain equipment to transport in a van to on-site locations for customers who own commercial fleets. The company would perform oil changes, lubes, air filter changes, and wiper blade changes. They plan to expand the services to include transmission and other fluid changes. The company would store vans and locate an office on a Manassas location. One of the partners will maintain daily on-site management of business.

At the first meeting, the Counselor and clients discussed several issues: Business entity and structure; Tax implications; Need for business professionals; Licensure; Leases; Franchises; Financing; Bank Accounts; Payroll; State Registration (R-1); Marketing Channels; Business Management; and Business Planning. The clients took the Center’s advice to heart, developed a business plan, and returned for a review. During the review, the counselor critiqued the plan, making suggestions, playing devil’s advocate.

At the end of 2003, the business launched as Capital Mobile Lube, Inc. with a sound business plan, two employees, $50,000 in equity investment, and $1,500 is sales.