Do you want to start an auto parts store online from scratch? Or you need a sample auto parts shop business plan template? If YES, then i advice you read on. As long as people still use automobile on our roads, the need for auto spare parts will continue to be in demand. Auto spare parts business is indeed a profitable business because the replacement of damaged or worn – out auto parts is compulsory if you want your vehicle to continue to be on the road and serve the purpose you bought it for.
If you are looking for a business to start as an entrepreneur and you know you have interest in the automobile industry, then you should consider starting your own auto spare parts sale business. Although you don’t need a college degree to establish your own auto spare parts store, but you would need some form of informal training, you might have to work as an apprentice with someone who owns an auto spare parts store. It makes it easier for you to learn the ropes and how to manage your own auto spare parts stores.
It is important to point out that auto spare parts business is one the businesses that can’t go out of fashion simply because of the role it plays in the auto industry. Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate. As a matter of fact, you can start your own auto spare parts store and then grow it big within a short period of time by re – investing your profits back to the business.
Now let us quickly consider the 7 surefire steps to follow to be able to start an auto spare parts store in your city and build it to profitability within the shortest time possible;
Starting an Auto Parts Store – Sample Business Plan Template
1. Conduct Your Feasibility Studies
Part of what you need to do to be able to start your own business on a positive and promising note is to first and foremost conduct a feasibility studies to get first hand information that will enable you know how to develop winning strategies that will help you breakeven within few months of starting the business.
As a matter of fact, your feasibility studies would give you an idea of the spare parts and brand that is in high demand in the city you intend establishing your auto parts store. You should conduct surveys that will reveal the brand of cars that are commonly found in your city.
For example, if the reports you got from your surveys revealed that the cars used in your city are Toyota, Honda, Nissan, Mazda and Mitsubishi products, then there is no point stocking your shop with BMW, Mercedes Benz, and Cherokee spare parts. It will pay you to only stock your spare part store with the parts of the vehicles that are commonly used in your city.
2. Learn the Trade
In as much as you don’t require a college degree or any formal training before you can start your own auto spare parts business, it will be to your advantage to acquire informal training in this line of business. So, ensure that you look for an established auto spare parts dealer to understudy.
It could be for a period of one year or more. It is important that you learn the trade because you will be required to easily identify auto parts specifications and some other details. Beside some clients would request that you advice them on what part to buy.
3. Raise Your Startup Capital
You would need a moderate startup capital to establish a standard auto spare part. Well moderate can be relative, because the cost of renting a store might vary from location to location. The capital you raised is what you will use to stock – up your store. It is important you know that you will need an auto spare parts business plan to raise money.
4. Register Your Business and Obtain the Required License
It is important that you register your auto spare parts business before opening your shop to the public. In some states in the united states and some other countries, you would be required a license to be able to own an auto spare parts business. Therefore, ensure that you make enquiries from your local authority to confirm if you would need a license and the procedures to follow to obtain it.
5. Rent a Store in Suitable Location
Normally, it is advisable to go around town to identify locations where existing auto spare parts stores are located before choosing a location for yours. The truth is that the location you choose to rent a store for your auto spare parts business determines the success of the business. It will pay you to choose a location where you will face less competition from other auto spare parts dealers.
6. Source for Suppliers of Various Brands of Auto Spare Parts
Part of what you need to do to get your auto spare parts business rolling is to source for suppliers of various brands of auto spare parts. There are various auto spare parts manufacturers all over the globe; it is your responsibility as a retail auto parts dealer to compare prices so that you can get good deals that will help you maximize profits.
7. Employ and Train your Sales Clerks
You would need sales clerks to help you attend to customers and it is important that you employ staffs that are interested in the auto industry. The truth is that if you have acquired the required training, it would be easier for you to train your staffs.
There are various auto parts that look alike, but can’t function in same position. That is why you must train your staffs to check for details before selling any auto parts to your clients. As a matter of fact, once your customers notice that you and your sales clerks are knowledgeable, they will always come back to buy auto parts from you.
Lastly, if you have successfully established your own auto spare parts store, as part of growing the business, you can consider opening and online auto spare parts store. With online auto spare parts store, you will have a wider reach.