CAR ACCESSORIES BUSINESS PLAN GUIDE
Automobiles are heavily reliant on the car accessory industry. This is because this ensures a constant supply of worn out as well as damaged parts. It is a multi-billion dollar industry that promises huge financial returns for investors.
This is why we will discuss on starting a car accessories store business for interested investors.
The auto industry is wide! There are tons of car brands as well as makes. To keep these cars functioning, replacements are needed. You have a lot of options to choose from when starting a car accessories store.
We will focus on the process of setting up this business as well as provide any other relevant information.
Here is a sample business plan for starting a auto parts store business.
- Car Accessories
Whatever the vehicle brand there are accompanying accessories. Some of the most common include puncture repair kit, car cover, steering locks, gear locks, remote locking system, all weather mats, air fresheners, seat covers, music system and navigation system.
Others include cycle mounts (for bicycles), roof racks, and car wheels among many others.
- Start-up Cost
It is necessary to have a clear idea of what you want. The scale of your vehicle accessory business will influence the startup cost. Mobilizing the needed funding is very vital. There are multiple options around funding. One of such is through savings.
Setting aside part of your income for the purpose of starting your own car accessory business requires time. This may take a year or more.
Loan application is yet another option available for funding your business. The Small Business Administration SBA provides a lender match which you can use to find lenders that offer loans for your business. The SBA provides the framework and guidelines for the application and issuance of loans.
You can use this option to raise funding for your car accessories store business.
- Choosing a Brand
The auto-industry is replete with assorted brands. To start your vehicle accessories business, you need to the brand(s) to work with. It is important to narrow down your pick to one or a few to avoid chaos. To do this effectively, you need to have some knowledge on each of the brands. To do this, important questions need to be asked.
Such questions include “which car brand is popular among car owners?” “What car brand presents greater profit margin in the sale of its accessories?” These and many more questions help in guiding you to make the right choices.
To find answers to these questions, you can;
- Discuss with Car Accessories Store Owners
To gain some insight into the how it works, you can discuss with owners of accessory stores. By speaking to several of these dealers, you will have a deeper understanding of the market dynamics as well as available opportunities you can exploit.
- Talk to a Mechanic
You can also speak to mechanic. These groups of people have a deeper understanding of the market. You will benefit significantly from their wealth of experience. This is because all mechanical problems in a car are fixed by them. The information provided enables you to know what step to take.
- Have a Business Plan
This is a necessary step to guide your business through its developmental phase. Your plan will also be required when applying for loans. When writing your plan, legal advice should be sought. This helps in the implementation of concrete steps that will consolidate your vehicle accessories store.
Within your plan, you should also include the type of accessories you plan on selling.
- Getting a Business License and Taxation
Getting a business license involves several steps. The Small Business Administration is where to go. There are applicable fees which will be disclosed upon inquiry. Different states may have different licensing requirements.
However what is common to all are federal taxes.
The Internal Revenue Service IRS issues the Taxpayer Identification Number TIN for identification purposes as well as taxation.
However if you will be needing the services of a workforce for your car accessory business, the Employer Identification Number is issued by the same agency of government.
- Leasing a Business Outlet
This is an essential step in your quest to establish a thriving car accessories store business. The choice of an ideal location matters a lot. What does an ideal location mean? It simply refers to a location which has significant commercial activity. Such places are best for establishing an auto accessories store.
Depending on the scale of your business, it should be spacious enough to include a show room as well as a store.
Other sections include the car maintenance section. If you can enter into a partnership with a mechanic to run such maintenance section, it will be an added advantage.
- Choose a Reliable Vendor or Manufacture
You need a steady supply of car accessories for your store. You should consider a reputable vendor or manufacturer known for quality as well as one that offers an attractive profit margin. The greater your turnover in sales, the greater profits you rake in.
When choosing a vendor or manufacturer to work with, you shouldn’t rush the process. Take your time to understand and choose the best. This impacts your business positively in the long run.
Without marketing, mediocre performance is unavoidable. You need to let car owners know about your business and services. How do you achieve this? You can achieve this by using available channels to reach your target market.
Some of these strategies include word-of-mouth marketing, distribution of your business fliers, radio and TV adverts, and many more.
Starting a car accessories store business is a process that requires diligence and dedication. It may be difficult at the beginning but it is financially rewarding when it eventually stabilizes.
An important step to take is to only choose popular and reliable car brands. The greater the number of people using a particular car brand, the higher your chances of making brisk business.