If you want to start a retail business in the automobile industry.
Then you can consider starting automobile retail business.
This business is highly profitable.
In this article, we intend to explore an auto spare parts business plan sample checklist for your ready reference.
Every auto spare part requires frequent change during the entire lifespan of the vehicles.
And only this single reason makes the automobile spare parts industry so lucrative and evergreen.
Basically, there are several ways you can start the business depending on your investment capacity.
However, never try to start this business as part-time.
Actually, this type of retail business demands constant dedication and efforts to be the successful one.
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Retail Auto-mobile Setting Plan http://www.smallstarter.com
Retail Auto-mobile Setting Plan
1. Get the Business Model
There are mainly four ways you can start automobile spare parts business.
Below are the following:
Automobile Spare Parts Retail Store
This is one of the most profitable and traditional ways of starting this business.
In this model, you will need to acquire a retail space in a good location.
And you will sell the spare parts from that retail counter to your customers.
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Automobile Spare Parts Store with Workshop
This is another a profitable opportunities for the entrepreneurs.
Basically, an auto spare parts retail store with workshop allows customers to buy the parts and fixing it.
However, it is a cash-intensive business.
With substantial capital investment and strategic planning, you can initiate this type of store.
Automobile Spare Parts Online Shop
If you don’t want to operate a brick and mortar establishment.
Then you can consider starting an online store.
Additionally, you can run and operate this business model from home also.
Basically, you can open the auto spare parts online shop with low startup capital investment.
To know how to set up an online store.
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Automobile Spare Parts Franchise
If you don’t have any prior experience in the automobile industry.
Then it is better to start the business as a franchise partner.
Even, you can consider spare parts distribution and dealership also.
Retail Auto-mobile Setting Plan
2. Get a Business Plan
Crafting a specific business plan is a must for starting this business.
Apart from creating a blueprint.
The business plan helps to identify the goal and the ways of achieving that goal.
Additionally, it helps to secure startup capital from the investors or banks.
Develop both a business and marketing plan.
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Your business plan must consist information about exactly how you are going to run the business.
Additionally, mention the specialty areas if any and how you will open and maintain your business.
Where you will get your car parts, and how you will price them to earn a profit.
Your marketing plan should contain information about your target audience.
And local competition as well as how you intend to draw in your target audience.
You can craft the plan yourself otherwise.
You can take help of professional plan writers or business plan software.
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Retail Auto-mobile Setting Plan
3. Conduct the Market Research
First of all, you must conduct a feasibility study to get first-hand information.
About the market condition and opportunities.
It will also help you to understand potential competition from the other operators.
Basically, it enables you to know how to develop winning strategies.
That will help you getting break even within few months of starting the business.
Additionally, you can identify the most popular spare parts brands in the local market.
Additionally, you will need to identify the different models of bikes.
And cars that have high population density in the city.
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Retail Auto-mobile Setting Plan
4. Understand the Industry Nitty Gritty
It is an another most important aspect you must consider before commencing this business.
Though the business doesn’t demand any sort of educational degree.
You must have clear knowledge about the inside industry.
You can work few days with other established shop owners to know the trade details.
Basically, you have to have a clear conception of the specifications of the different spare parts.
Additionally, you may need to advise your customers what to buy and what not.
These all demand specific knowledge about the spare parts industry.
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Retail Auto-mobile Setting Plan
5. Calculate Startup Capital
After getting the knowledge and finalizing the business model.
You must calculate the requirement of startup capital.
Generally, you have to consider the rent of the retail space.
Store setup costs and purchasing the spare parts from the wholesaler or manufacturing companies.
Additionally, you must calculate and keep finance for operating expenses also.
It will help you in calculating the break even and expected ROI of your business.
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Retail Auto-mobile Setting Plan
6. Ensure a Retail Location
After getting the plan properly.
You will need to secure a location according to your business model.
You must select the store space in a good location.
However, if your marketing and advertising strategies are good enough.
You don’t need to invest much more in the location.
Definitely, you will need a location that is big enough to house.
And properly catalog a variety of spare parts for all the makes and models of cars you cater to.
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Retail Auto-mobile Setting Plan
7. Licensing & Registration Issue
Check the registration and licensing issues of your state.
Get the licenses for opening the store, selling spare parts and have the right insurance.
It is always advisable to talk with a local small business consultant for the upcoming tax and compliance liabilities.
Retail Auto-mobile Setting Plan
8. Procure the Spare Parts
After finalizing the store, you will need to procure the spare parts that you want to sell from your store.
Actually, identifying the parts you need.
And where to find them depends largely on your business plan.
According to your plan, talk to the companies and deal with the best quote with MOQ (minimum order quantity).
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Retail Auto-mobile Setting Plan
9. Setup the Store
You must set up the store properly. An outdoor sign is a must.
Additionally, check the electrification, counter space and selves properly.
You can consult with an interior designer to have a right floor plan.
However, you must use every inch of space properly to get the optimum benefits of it.
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Retail Auto-mobile Setting Plan
10. Hire Employees
Hire right manpower. In any startup business.
Initial employees play important role in getting the initial success.
Check, whether you need a licensed mechanic or not.
Additionally, if you want to open the store with a workshop.
Then consider keeping an automobile engineer too.
There are several free job posting sites that you can explore for headhunting.
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Retail Auto-mobile Setting Plan
11. Carry out Research
Starting a new business is exciting and it can be tempting to dive-in head first to get things up and running.
But before you start, go undercover.
There are numerous trade organizations.
And small business bureaus that can provide valuable information about your genre of the industry.
Both the National Retail Federation (NRF)
And the Retail Industry Leaders Association(RILA) are resources that offer market research.
Sales forecasts, supplier guides, recruitment and training tools plus information about regulatory and tax laws.
Several retailers like The Gap and Home Depot are RILA members.
And were originally single-store businesses.
Because they “started off as entrepreneurs, they are always willing to give advice.
It’s always a good idea to tap into the expertise of more established businesses.
To learn what did and didn’t work.
This type of information can be invaluable.
So you don’t have to make the same mistakes.
Retail Auto-mobile Setting Plan
12. Taking Inventory
A crucial part of the plan is how you will obtain the goods being sold.
Making sure the store always has what a customer asks for will reduce walkouts.
And the number of customers that don’t return.
The first step is to select a manufacturer or wholesaler that sells directly to retailers.
If they don’t ship, find a company that will deliver your goods or choose another provider that does.
During the selection process research prices, the payment terms.
How quickly they can fulfill re-orders.
And whether or not you can get credit, suggests The Small Business Association.
Retail Auto-mobile Setting Plan
13. Watch Your Money
Tracking expenses and revenue can be one of the most important parts of a plan.
It serves as a fiscal bible to keep cost under control and the business profitable.
There are numerous software packages or free online worksheets.
That can be used to tabulate starting inventory.
Fixtures/equipment, decorating, utilities, legal fees, advertising, licenses/permits.
Staff salaries and other things that will cost the business money.
The bright side is calculating expected sales and finding out that your revenue is greater than your cost.
If you are in the red.
It is not necessarily a sign that the business is in bad shape.
But you may need to cut back or seek out a loan.
Having extra equity will cover your expenses.
While you get the company off the ground.
However, the best business plans show profitability early on in the life cycle.
Retail Auto-mobile Setting Plan
14. Conduct Financial Housekeeping
For retailers needing financial support.
It’s wise to understand a bank’s lending criteria before you get started.
According to Blair Smith, a financial consultant and former banker.
It may not be wise to dump all of your cash into a new business.
Instead, he recommends using some of that equity to clear up any unresolved personal credit issues.
This can make a difference between getting approved for a loan versus being asked to provide collateral.
Smith added, “There was a time when a bank would look to see how much your company would be worth in five years.
Valuing a business is not as reliable as it used to be so a retailer’s total revenue is very important.
It’s an indicator of the ability to pay back the loan.
Also, some businesses like casinos and jewelry stores are frowned upon.
Owners of these establishments need to “include safeguards in the business plan to eliminate the perceived risk,” warns Smith.
Retail Auto-mobile Setting Plan
15. Environmental Sustainability
Giant retailers like Wal-Mart are creating advantages over their competitors.
By using eco-friendly branding as a way to promote the chain in a positive light.
You too can include “green” as an integral part of the store’s customer promise.
It’s a great way to establish a leadership position in the eyes of customers.
And can differentiate a brand in a crowded pool of competitors.
Long term, it can create a loyal following of buyers that want to support socially conscious establishments.
Nicole Copeland, who provides small business training and supportive services through TAC Companies.
In Bal Harbour, Maryland says, “Using recycled bags, motion detector lights, electronic receipts.
And green construction products can set your business up to be environmentally sensitive.
While saving you money at the same time.”
Eco-friendly retailers may be eligible for grants.
And special tax incentives once they’ve established a track record for reducing the carbon footprint.
Copeland recommends contacting the local Department of Economic Development.
To get information on your city’s programs.
Retail Auto-mobile Setting Plan
16. Advertising Strategy
Now that you’ve got supplies, it’s time to create demand and move that inventory off the shelves.
Coming up with a way to advertise your retail business will bring exposure and foot traffic into the store.
The first step is to determine who your target audience is.
You can identify the characteristics of potential customers by asking these questions:
• Who will my product/service appeal to?
• Who can afford the price point of my product/service?
• What customers are in close proximity to my retail location?
• My product/service will most likely appeal to which gender, culture and age group?
The second step is to evaluate the competition.
Find out what retailers in close geographic location offer the same products/services you do.
Conduct an online search of those businesses to see if and where they are advertising.
Because we live in a viral world.
Retailers are not only using traditional advertising like radio and print but there’s sources like blogs, and other social media outlets.
There are even services that can make your business appear as one of the first links listed in an online search.
For example, if a customer types in “Paint Store, Dallas,” a paid search engine result would put your business at the top of the list.
Determine what advertising works best for your store.
And how you will allocate the money budgeted for marketing.
Once the business plan is completed.
You’ll be on your way to turning a vision into what will hopefully become a profitable reality.
Retail Auto-mobile Setting Plan
Conclusion:
Finally, it is time to promote your business.
In initial days, it needs tremendous promotion and advertising.
Additionally, the success of this type of niche businesses highly depends on the B2B networking.
You must contact other businesses in the industry.
As an example, automobile workshops buy spare parts in bulk frequently.
You can offer a special discount for them.
Consider selling online. In today’s digital era, you can’t ignore the internet audiences.
You can sell the auto spare parts from online marketplaces or from your own online store.