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Owning a tire shop is a profitable business provided you are able to serve the right customers. All who drive look for new tires when they realize it is risky to carry on with existing tires. After all, everyone wants safety.
No matter how good roads are, a tire’s lifespan doesn’t last long as it takes regular road beatings than other vehicle parts. That is why most commercial vehicle owners often go for tire checkups. Many times they will need tire replacements. And, that is when you come to play your part to satisfy their needs.
Here is a comprehensive guide to help you establish a new tire shop in your locality.
Pros & cons
Starting a tire shop, like all businesses, has advantages and disadvantages. Here is a table of pros and cons associated with a tire business.
|No special qualifications||High competition|
|No special skills||Difficult to manage stock for all automobile types|
|Affordable Capital & Labour Requirments||Business registration required|
Write a business plan
A business plan is a professionally written document that contains a summary of your overall business objectives and reasons that those objectives are practically achievable.
It also contains practical information about your target demographic, competitors, financial requirements, resources, promotional strategies, etc.
Writing your business plan isn’t just crucial for raising funds for your startup business; it is also a precautionary measure to mitigate unforeseen future problems.
You shouldn’t see creating a business plan an overwhelming task but an opportunity. If written correctly, a business plan will help you monitor and improve the underperforming areas of your business in the future.
Get your license
Depending on your local legal requirements, you may or may not require a license for business operations. If you do require, you would want to talk with other local tire shops and don’t shy away from asking them about the application procedure.
Whether you need to get licensed or not, you certainly are required to open a current business account in a bank and have a TIN available for inventory purchases from suppliers.
Get your investment
You don’t need experts to understand what you need to invest in when starting a tire business. Even a child can tell you that you need startup costs for tire inventory, storefront rent, tools required for changing and installing.
You would also require additional charges for buying necessary tools and equipment if you want to offer some extra services such as air pumping, puncture removal, tire repair and wheel alignment in case you don’t already own them.
Choose a location
You also don’t need a full day to think about where to establish your tire shop. It is easy. You need to set it up on a roadside but make sure the road has moderate vehicular traffic.
The availability of enough parking space is also necessary. However, be careful when signing an agreement with the landowner. Include terms that will help you escape easily in case you may need to relocate to another place.
Buy your inventory
Look and buy the supply of tires from brands that enjoy the highest market reputation. Based on the positive reviews, Cooper in the United States, MRF, APOLLO, etc. in India is a famous tire manufacturer.
You may also want to sell retreaded tires to drivers who don’t due to financial constraints or don’t like to buy new tires.
Advertise your business
You don’t need to spend money on a television advertisement. However, you will have to create a signboard with a local painter’s help and hang it on the top front side of your store.
However, make sure, your business name and contact and whatever you want the painter to write on the board should be crystal clear. Thank you!