Torque Precision Auto Business Plan — Accreditation and Compliance
RMI and MIWA membership, MIBCO registration, diagnostic data subscriptions and the sequence in which each approval must be obtained.
Accreditation and Compliance
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Opportunity
- 3. How a Workshop Actually Makes Money
- 4. Accreditation and Compliance
- 5. SWOT and Competitive Position
- 6. Operations and the Bay Build
- 7. Route to Market
- 8. Management and Governance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Operating Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- 4.1 Sequencing the approvals
- 4.2 Technician remuneration under MIBCO
|
Requirement |
Purpose |
Note |
|---|---|---|
|
Company registration, tax compliance and VAT |
Trading and vendor onboarding |
Fleet and insurer accounts will not onboard without a valid tax compliance status |
|
RMI and MIWA membership with star grading |
Industry accreditation and consumer trust |
The visible mark of an accredited independent; a precondition for most fleet and insurer work |
|
MIBCO registration and compliance |
Motor industry bargaining council wage and benefit agreements |
Wages, provident fund, leave and sick pay are set collectively. Non-compliance carries real exposure |
|
Qualified trade-tested technicians |
Capability and warranty-standard work |
Trade-tested motor mechanics; apprentices registered through merSETA against the qualification |
|
Manufacturer diagnostic data subscriptions |
Access to fault codes, resets and electronic service records |
The guidelines require manufacturers to make this accessible; the workshop must budget for it annually |
|
Public liability and workshop insurance |
Cover for damage to customer vehicles |
Right to Repair guidance explicitly points consumers to the independent workshop’s insurance as their protection |
|
Municipal business licence and zoning |
Premises compliance |
Industrial or approved commercial zoning; confirm before signing a lease |
|
Environmental compliance |
Waste oil, filters, coolant, brake fluid and parts washing |
Registered waste disposal contractor and documented disposal records |
4.1 Sequencing the approvals
|
Approval |
When it must be complete |
Why the sequence matters |
|---|---|---|
|
Company registration, tax compliance and VAT |
Month 2 |
Fleet and insurer accounts will not onboard without a valid tax compliance status. Nothing else proceeds without the entity |
|
Municipal business licence and zoning confirmation |
Before the lease is signed |
Industrial or approved commercial zoning. A workshop on incorrectly zoned premises can be closed |
|
MIBCO registration |
Before the first technician starts |
Wages, provident fund, leave and sick pay are set collectively. Non-compliance carries real exposure and back-pay risk |
|
Public liability and workshop insurance |
Before the first vehicle is accepted |
Right to Repair guidance points consumers to the independent’s insurance as their protection. An uninsured incident is existential |
|
RMI and MIWA membership application |
Month 5, at opening |
The visible mark of an accredited independent; a precondition for most fleet and insurer work |
|
Manufacturer diagnostic data subscriptions |
Month 4, ahead of opening |
The guidelines require access; the workshop must budget for it annually and keep technicians trained on it |
|
Environmental compliance and waste contractor |
Month 4 |
Waste oil, filters, coolant and brake fluid require registered disposal and documented records |
|
Insurer accreditation for mechanical claims |
Year 2 |
Case-by-case approval on published standards; requires the RMI and MIWA standing and a track record |
4.2 Technician remuneration under MIBCO
|
Element |
Basis |
Why it matters |
|---|---|---|
|
Base wage |
Set collectively under the MIBCO main agreement by grade |
The floor. A workshop that pays only the floor does not retain the technicians who run above book time |
|
Efficiency bonus |
Documented, paid on book hours invoiced above a threshold |
So the best technicians earn visibly more. The difference between a 104% and a 117% technician is R1 526 018 of Year 5 EBITDA across the fleet of bays |
|
Tool allowance |
Monthly, against a documented tool inventory |
Technicians own their tools; an allowance retains them and signals the workshop’s investment |
|
Provident fund, leave and sick pay |
Set collectively |
Statutory and collectively bargained; non-compliance is a real exposure |
|
Apprentice stipend |
merSETA-registered against the qualification |
The pipeline that solves technician scarcity over three years, and a below-award cost during training |
Labour cost is carried in the direct cost line at 34 per cent of labour revenue — the complement of the 66 per cent labour gross margin. That ratio holds only if technicians run at or above book time; a workshop whose technicians average 90 per cent efficiency, as in Year 1, is paying for clock hours it does not sell, which is why the Year 1 gross margin is 28.8 per cent rather than 45.7.