Every automotive spare part needs frequent change all along the entire lifespan of vehicles. This is why starting an auto spare parts business is so lucrative and evergreen. So even with massive companies dominating the global automotive aftermarket, smaller contenders like private automotive businesses can still grow using the ideal method.
Generally, you can start your auto spare parts company in many ways depending on your investment capability. However, never attempt to establish this business as part-time because this kind of business demands constant efforts and dedication to succeed.
Here are some tips when starting an auto spare parts retail store.
Devise A Business Plan
Creating a specific business project plan is a must when starting a retail store business. Aside from structuring a blueprint, the business plan helps to identify and achieve the objectives. Moreover, it secures the startup capital from banks or investors.
Keep in mind that it is essential to develop both a business and marketing plan. Your business plan must have all the information about how precisely you will run the retail store. For example, indicate the specialty areas, if there are any, and how you will maintain the business. Also, you can state where you plan to get the auto parts and how the prices will be to earn a profit.
Your business marketing plan must contain data about the local competition, your target audience, and how you intend to draw them in. This plan can be crafted by yourself or by a professional plan writer.
Conduct Market Research
Initially, you need to conduct a feasibility study to get a piece of first-hand information regarding the market condition and opportunities. Moreover, it will help you understand such potential competition from other operators. Hence, this will enable you to identify and develop winning strategies to achieve a break-even point just within a few months of launching the business.
More than that, you can determine the most in-demand spare parts brands in the local market. Also, you have to pinpoint various models of cars and bikes with a high population density in your area.
Learn The Industry
Understanding the auto parts industry is one of the most essential aspects you need to consider before commencing your store. Although the business does not demand any educational degree, you should know the inside industry. How? You can try working for a few days with other established retail shop owners to experience the trade details.
Generally, you need to have a clear notion of the specs of various spare parts. Also, you might need to advise the customers about what to buy and what to avoid. All of these demand specific knowledge about the auto spare parts sector.
Calculate The Shop’s Startup Cost
After learning and finalizing the company model, you need to calculate the startup capital. For the most part, you have to think about the rent of the retail space, store setup expenditures, and purchase cost of the auto parts from manufacturing companies. Also, there is a need to calculate and finance the operating expenses. Doing so will help you compute the breakeven and expected returns of your business.
Retail Location
Another thing is that you need to secure your retail store's location based on your business model. For example, you will need a prominent place to house and adequately catalog various spare parts for all the makes and models of cars you accommodate. Also, choose a suitable location space. But suppose your marketing and advertising strategies are good enough; you do not need to invest much more in the location.
Licensing And Registration
Make sure to check and verify the registration and licensing issues of your state. Then, get the licenses for opening the store, selling spare parts, and get the right insurance. It is always advisable to talk with a local small business consultant about the upcoming tax and compliance liabilities.
Procurement Of Auto Spare Parts
After finalizing the location, registration, and licensing, you will need to buy up stocks of spare parts that you will sell. Knowing the spare parts you need and where to find them relies mainly on your business plan. Partner with a reliable auto spare parts manufacturer. For wholesales and best quotations with MOQ (minimum order quantity), check out www.sunway autoparts.com.
Set Up The Store
It is now time to put up your auto parts retail store! You can consult with an interior designer for an ideal look of your store and its floor plan. Put some LED strip lights to add some flare. Also, don’t forget about the outdoor sign, electrification, counter space, and shelvings.
Hire The Right Manpower
In any startup business, the employees play an essential role in getting the initial success. Create detailed job descriptions and prepare well-structured interview questions. This will help you filter your applicants and get suitable employees for your store.
Car Part Company Conclusion
Your auto parts store is almost good to go. You just have to set your launch date for your new brick and mortar shop. Remember, this is just the start. To fully succeed in this industry, follow your conducted research and business plan. Still, it wouldn’t hurt to be a little flexible if unforeseen problems need fixing beyond your car parts business outline. Good luck, and we wish you success!
