TIRE SHOP BUSINESS PLAN GUIDE
If you love cars and everything that has to do with it but you don’t have the necessary fund to open a mechanic shop, you can alternatively open a tire shop. Starting a tire shop business requires less hard work and it is as profitable as a full vehicle or service repair business.
If you are having problems starting a tire shop business, here is a complete guide to assist you in starting one in your locality. Tire is as important as every other part in a car. No car can move without tires and car owners want to run with a good tire.
Tires suffer most of the damages in a vehicle which calls for the services of a tire shop to help assist car owners with good tires. The best thing is that, you don’t need large capital to start a tire shop business. You just pick a good location, get a jack and few equipment and work your ass as your business grows.
The starting process can be fun and exciting and rewarding too. Tire business goes beyond just selling. You can deliver so many services like alignment and balancing, air pumping, fixing up punctured tires, oil change etc.
If your one of your goal is to start a tire shop business, here are what you need to know to get started;
HOW TO OPEN A TIRE WHOLESALE BUSINESS
- Draw up a Business Plan
Drawing a business plan for your tire business is one key to get started in the business and in any business. Investors won’t even consider giving you loan if you can’t show them a business plan for your tire shop business.
Another good thing is, while preparing your business plan, it will force you to start thinking about important factors to consider in your business. Please, don’t skip this process. While drawing your business plan, be certain about your target customers, your competitors, marketing strategies, company’s name and financial requirement.
- Be Grounded about Tire and Vehicle Servicing
Having a good knowledge about the business you are going into will be a good start for you. Tires and wheels come in different sizes, shapes and prices. There are tires for sport vehicles, trucks and commercials vehicles. You should know about them so you don’t look like a novice in front of your customers.
The best way to learn about this is to either go learn from a successful existing tire shop dealer where you have to work for the owner or you spend enough time at where you will always be making purchases to ask questions.
- Evaluate your Competitors
To be assure of the success of your tire shop business, you will need to evaluate your competitors in the vicinity you wish to site your business. Don’t just pick a location before doing this, it is very paramount if you want to start seeing good result at the start of the business.
It is better thinking of how you can grow your tire business than thinking of how you can beat your competitors. If there is a well-known competitor in the town you would like to site your tire store, it will be very hard for you.
Notwithstanding, you will still make money but it will take time to build relationship and trust with your customers and grow your business. Have it in mind that your customers will want to compare your services with their former before they can trust that they will patronize your business.
- Pick a Location
The ideal location for a tire shop business is a busy road that is accessible by trucks and commercial cars and maybe close to a gas station if possible.
- Obtain Licenses
You will have to obtain necessary licenses and documents needed to operate a tire shop business before you get started to avoid any government agency distrusting your business operation.
- Decide on your Niche
You have to decide if you want to be selling new tires, old ones or both. And establish a good relationship with tire suppliers (manufacturers or wholesalers). Good tire brands include Michelin, Good Rich, Good Year, BF. Get the necessary tools and equipment like wheel balancers and handlers too to get those tires fixed properly.
- Apply for Business Insurance
Apply for business insurance to protect your business against unforeseen circumstances like fire and theft.
- Market your Business
Your clients need to know that your business exist. Market and promote your tire shop business to attract customers to you. You will need to have a budget for this. Offering discount to your first-time customers is one good way to spread the news about the existence of your tire shop business and it location.
This is all you need to start a tire shop business in your locality and make good money out of it.
Here is a sample business plan for starting a tire retail shop.
TIRE SHOP BUSINESS PLAN EXAMPLE
With special focus on a tire shop business, this article specifically focuses on providing a working sample for entrepreneurs interested in this area of business but who have inadequate knowledge on how to put together a proper business plan.
Through the provision of the right guidelines, the entrepreneur is enabled to follow these laid down guidelines in writing his/her unique business plan through a process of brainstorming on what is true for his/her business. We begin the tire shop business plan sample under the following;
- Executive Summary
- Products and Services
- Our Vision
- Our Mission
- Target Market
- Competitive Advantage
- Sales and Marketing Strategy
- Revenue Projection
- Publicity and Advertising Strategy
- Payment Options
Durable Tires LLC to be located in California is a wholesale and retail tire shop business that will be offering quality tires that range from both brand new and fairly used tires. With adequate feasibility studies carried out, we will be competing favourably with other businesses that offer related services, ensuring that the viability of our business is assured through increased sales.
Products and Services
With mainly tire products as our main areas of expertise, we will be including a wide range of tire brands among our displayed tire products. This is in a bid to cater for the specific needs of our diverse clients who have their different tire brand preferences.
Among the products to be displayed at our business outlets are; the retail/wholesale of light vehicle tires, heavy duty trucks, tubes, rims, and also the provision of vulcanizing services among other value added services on offer.
Our vision at Durable Tires LLC is to be among the biggest tire shops within California within the first 5 years of our commencement of business. This will be driven by the high professionalism, fuelled by a dedicated workforce committed to accomplishment of the vision and ideals of our business.
Also, we have the vision of being a one-stop shop for all tire brands, ensuring that all major tire brands are available at all times. Building a good working relationship with major suppliers will help in achieving this goal.
At Durable Tires LLC, our mission is to fill the gap in demand of quality tire products, ensuring that while satisfying these critical needs, a good profit is made at no increased expense cost to our esteemed clients.
Our outlets will not be restricted to California alone, as we would be expanding our services to effectively cover the entire United States within 10 years from the commencement of business.
Our target market will include all automobile users. We will be including the sale of fairly used tires to the new ones in a bid to accommodate a wide range of clients with different financial strengths. Some of these include car owners, car dealerships, car hire companies, corporate bodies among several other targeted clients.
With our competitors offering essentially the same type of service, we will be brining in innovation into the way we offer our services to ensure that clients are treated to a much better service experience from our dedicated workforce.
Some of these areas of our competence include the strategic location of our tire shop which is located in a busy neighbourhood with lots of foot and vehicular traffic, raising the likelihood for increased patronage.
Also, we will be ensuring that our collections of tires are more diverse than what is obtainable in other tire shops in California. This is a strategy to increase patronage due to adequate stocking of tires of all brands, ensuring that clients do not need to go from one dealer to another.
Sales and Marketing Strategy
Among the sale and marketing strategies to be adopted is the creation of awareness among potential clients through the dissemination of introductory letters to both individuals and organizations to acquaint them with the services we render.
Also, we will include a discount system to encourage and attract patronage to our tire shops.
We have carried out a research within the tire shop business industry, and findings have shown that we will achieve a steady growth in our revenues. Among the variables used for this research, variables such as the effects of economic recession and natural disasters have been discounted in arriving at the conclusion.
A brief summary is presented in the chart below;
- First Year $310,000
- Second Year $500,000
- Third Year $780,000
Publicity and Advertising Strategy
The publicity and advertising strategy to be deployed will include a wide range of channels such as paid adverts in both print and electronic platforms, the exploitation of the internet through the use of social media platforms to spread word on services offered by us.
We will also have a functional and user friendly website that will be displaying all the services offered by us.
The payment options to be used by us will include a variety of channels to adequately cater for the payment preferences of clients. Among such options are the use of POS machines, acceptance of cash payments, the use of mobile banking platforms, and acceptance of cheques among several other payment options.
This article has focused on the tire shop business plan sample, providing the basic requirements for writing an effective business plan for entrepreneurs that encounter difficulties in writing good business plans.
By following the procedures laid down, all the entrepreneur needs to do is simply to follow these procedures while brainstorming on what is true for his/her business.