Business plan
Sample plan · fictional businessA complete appliance repair business plan: Ridgeway Appliance Repair
Fresno, CA · Startup plan · a fictional appliance repair business, written by the free generator from five answers
Executive summary
Ridgeway Appliance Repair is a new appliance repair business in Fresno, CA offering refrigerator and freezer repair; washer and dryer repair; dishwasher repair; oven, range and cooktop repair; and diagnostic visits at a posted fee. The model is one well-stocked van, a posted diagnostic fee, most jobs finished on the first visit, and direct customers and property managers steadily replacing home-warranty volume.
Startup budget: $27,258 across 11 items, funded from savings. Target: $10,800 in monthly sales.
Twelve months from now, success looks like this: About 60 paid repairs a month — roughly three a working day — at an average ticket near HomeAdvisor's $180, about $10,800 a month, with a property-management account and a trade account at a parts distributor
Products and services
Ridgeway Appliance Repair's core service is refrigerator and freezer repair. Every visit starts with a diagnosis at a posted fee, the repair is quoted in full before any part is ordered, and every repair is backed by a written warranty on parts and labor.
- Refrigerator and freezer repair
- Washer and dryer repair
- Dishwasher repair
- Oven, range and cooktop repair
- Diagnostic visits at a posted fee
Market analysis
The customers are homeowners whose refrigerator, washer or oven has just stopped working, renters and landlords who need an appliance fixed before a tenant moves in, the property managers with dozens of units, and the home-warranty companies and manufacturers' service networks that send covered calls to local technicians.
- Homeowners whose refrigerator, washer or oven has just stopped working
- Renters and landlords who need an appliance fixed before the next tenant or inspection
- Property managers and apartment communities with dozens of units of appliances
- Home-warranty companies and manufacturers' service networks that send covered repair calls to local technicians
Marketing strategy
Most calls will start on Google — a homeowner whose fridge has stopped cooling searches “appliance repair near me” and calls the first technician they trust, so the Google Business Profile, the reviews and a website with the number and the diagnostic fee at the top decide who gets the call. Word of mouth from neighbors and property managers brings the repeat work that pays better than the warranty networks.
- Google Business Profile and Google — “appliance repair near me” is searched the day the fridge stops cooling
- Property managers, landlords and apartment communities with steady repair work, on payment terms
- Home-warranty and manufacturer service networks for early volume, at their contract rates
- Word of mouth and reviews from neighbors — a repair that saves buying a new appliance is the review people write
- A website with a call button, the appliances and brands you fix, your diagnostic fee and a repair request form
Operations plan
The owner diagnoses, repairs and books in year one, keeps the van stocked with the parts that fail most, orders the rest from a distributor, recovers refrigerant with certified equipment on every sealed-system job the EPA rules cover, and tracks repairs per day, first-visit fixes and the average ticket.
- Every visit starts with a diagnosis at a posted fee, told to the customer before the visit
- The repair quoted in full — parts and labor — before any part is ordered
- Common parts stocked on the van, and a trade account with a parts distributor for the rest
- Refrigerant recovered with certified equipment on every sealed-system job that the EPA rules cover, never vented
- Every repair backed by a written warranty on parts and labor
- Model and serial numbers logged for every appliance, so the next visit starts with the history
Startup costs
What it will take to open the doors, funded from savings.
| Item | Amount |
|---|---|
| Service vehicle: a used cargo van, or the vehicle you already own | $12,000 |
| Van shelving for parts and tools | $1,267 |
| A multimeter, an HVAC clamp meter, a gas manometer and an appliance hand truck | $889 |
| Refrigeration tools for sealed-system work | $632 |
| Training and the EPA Section 608 Type I certificate | $2,105 |
| Starter parts stock: belts, igniters, pumps, switches and seals | $1,000 |
| Insurance: liability and commercial auto, plus tools cover at the high end | $2,934 |
| State appliance repair registration, where required | $95 |
| Business registration (LLC) and EIN | $170 |
| Website and Google Business Profile | $0 |
| Working capital: two months of running costs | $6,166 |
| Total | $27,258 |
Typical range to start an appliance repair business in the US: $5,715–$50,799. Your list is what you decided to spend — replace estimates with real quotes as you get them. Website and Google Business Profile: Your Zarla plan includes the website — a call button, the areas you cover on a map and a repair request form, with your brands, diagnostic fee and warranty added in chat — and walks you through your Google Business Profile. Having one built typically costs $500 to $2,000 from a freelancer.
Financial plan
The numbers below come from your own startup list and typical monthly costs for a one-van appliance repair business in the US. Insurance, fuel and the phone are mostly fixed and the parts come out of each ticket, so the plan turns on how many repairs a day, at what average ticket, cover them — and the cash reserve covers the networks and property managers that pay 30 to 45 days after the job.
Typical monthly operating costs for an appliance repair business: $2,373–$4,602 a month, before the owner's own pay.
At $10,800 in monthly sales, Ridgeway Appliance Repair would clear $6,198–$8,427 a month before owner pay and tax, and recover the $27,258 startup budget in roughly 4–5 months.
| Cost | Typical range |
|---|---|
| Insurance: liability, commercial auto and tools cover | $384–$425 |
| Replacement parts (scales with jobs) | $1,500–$3,000 |
| Fuel for service calls | $289–$577 |
| Phone, call answering and bookkeeping | $100–$300 |
| Local marketing and review requests | $100–$300 |
US ranges for a small operation; replace with your own figures as you learn them.
Risks and honest downsides
Every appliance repair business plan should say out loud what can go wrong. For Ridgeway Appliance Repair, the real risks are:
- Home-warranty and manufacturer calls fill the day at the network's contract rate, not yours — a business built only on them works long hours for thin margins
- A misdiagnosis means a part ordered, a second trip and a customer who pays for neither — the diagnosis is where the money is made or lost
- Parts delays stretch a one-visit job into a week, and the customer is without a fridge or a washer the whole time
- Gas ranges, dryers and live electrical work are dangerous — gas and power are shut off and tested before every repair, and newer refrigerators run on flammable isobutane
- One van is one point of failure: a breakdown or an injury stops the income until it's fixed
Licenses, permits and insurance
What Ridgeway Appliance Repair needs before it can legally trade in the US. Rules vary by state and city — confirm each item with your local licensing office and an accountant.
- EPA Section 608 certification for refrigerators and freezers — In the US, the Clean Air Act's Section 608 rules require anyone who could be expected to open the refrigerant circuit of a small appliance — a refrigerator, freezer, room air conditioner or dehumidifier factory-sealed with five pounds of refrigerant or less — to be certified as a Type I technician, and only certified technicians can buy the refrigerant, HFCs such as R-134a included. Before opening one, recover the refrigerant with certified recovery equipment: 90% when the compressor works, 80% when it doesn't, or a four-inch vacuum. EPA exempts household refrigerators and freezers charged with isobutane (R-600a), propane (R-290) or R-441A from the venting ban and these rules. The Type I test can be taken on site or by mail, and the certificate never expires.
- State appliance repair registration where your state requires one — Most US states don't register appliance repair, but some do. California requires every appliance service dealer — a business repairing refrigerators, freezers, ranges, washers, dryers, dishwashers or room air conditioners for pay — to register each location with its Bureau of Household Goods and Services: $190 a year (the law caps it at $205). It also requires a written estimate before any repair, the diagnostic fee in writing before a repair in the home, invoices kept for three years, and replaced parts handed back to the customer unless they go back under a warranty or are exempt. Washington licenses electrical work on hard-wired appliances as its own electrical specialty (07D), which takes 2,000 hours in the trade to certify; plug-in appliances are outside its electrical law. Check your state and your city.
- Licenses for new circuits and gas lines — In the US, repairing an appliance is a different job from running a new electrical circuit or a new gas line, which states license as electrical or plumbing work. Keep to repairs and like-for-like swaps until you have checked your state's electrical and plumbing boards.
- Sales tax on repairs and parts — In the US the rules run in opposite directions from state to state: Texas taxes the whole charge to repair an appliance, labor included, while California generally doesn't tax itemized repair labor, only the parts. Confirm with your state's revenue department and an accountant before you set prices.
- General liability and commercial auto insurance — In the US no law requires general liability, but home-warranty companies and manufacturers' service networks ask for it before they send work, and property managers ask for the certificate. Insureon's medians for installation businesses are $85 a month for general liability, $299 for commercial auto, $41 for tools and equipment and $165 for workers' compensation, which most states require once you hire.
- Business registration, local business license and EIN — In the US you can form an LLC — $40 in Kentucky, $300 in Texas — and take a free EIN from the IRS. Your city or county may add a business license.
Milestones: the next 30 days
The first month's to-do list for Ridgeway Appliance Repair, in order:
- Pass the EPA Section 608 Type I test before you touch a sealed system
- Register the business, take the free EIN and open a business bank account — and register with your state if it requires appliance repair registration
- Buy general liability and commercial auto cover before your first job
- Kit the van: meters, an appliance hand truck, your hand tools, and the refrigeration tools if you fix refrigerators
- Open a trade account with a parts distributor in your area and stock the parts that fail most often
- Set your diagnostic fee and decide whether it is credited to the repair, and how you'll price the repair itself
- Set up a free Google Business Profile, and put your website live with your number, your diagnostic fee and a repair request form
- Apply to one or two home-warranty or manufacturer service networks for early calls, visit property managers, and ask every happy customer for a Google review
Appendix: what a lender will ask for
This plan tells the story and shows the numbers. If you take it to a bank, expect to be asked for these documents as well:
- Two years of personal tax returns and a personal financial statement
- A month-by-month 12-month cash-flow projection built from repairs per day and your average ticket
- Your EPA Section 608 certificate and any state registration
- Insurance certificates for general liability and commercial auto
- Quotes for the van, tools or parts stock the loan would pay for
- Your credit report