If you want to know how to open a tire shop business, reading this comprehensive guide will help you get started today.
Everyone who owns and drives a vehicle knows that tires in good condition are very critical to the performance and safety of a vehicle.
No matter how good roads are, tires are bound to bear the beating than any other vehicle part since they come in direct contact with the road. When left un-inspected with time, chances of countering road accidents become quite high naturally.
There are more vehicles on roads than ever. Many drivers would arguably go to dealerships to buy tires when necessary. However, many like to opt for independent tire shops simply to escape from the hefty costs these dealerships charge and that is what gives you the reason to start your own tire store business.
Pros of opening a tire shop
Every type of business has its own set of pros and cons and the tire shop is no exception. Here are pros associated with a tire shop business:
- Relatively very easy to start
- You don’t necessarily need to be highly educated to run a tire shop
- Doesn’t demand you to have a special skill set
- Neither capital nor labor intensive
- Fewer utility expenses
- Highly profitable if run smartly
Cons of opening a tire shop
There are unfortunately many cons involved as well and few of them are here under:
- Highly competitive niche in the automotive industry, hence demanding more yet smart efforts
- Difficult to manage stock for every type of vehicle
We assume that you have learned some advantages and disadvantages above, let’s now shed light on the following steps that you should exercise practically in order to get your tire shop business started:
- What and why do you need a business plan?
- Get properly licensed
- Estimate and get your investment
- Where to establish your tire store business?
- How to buy tire inventory from a supplier?
- What are the effective ways to promote your business?
1. What and why do you need 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 realistic information about your target demographic, competitors, your financial requirements, resources and promotional strategies, etc
A business plan isn’t just a tool to raise funds for your startup business as you might have been told by experts on the web. What we believe is that a business plan is also a precautionary measure to mitigate unforeseen future problems.
You shouldn’t see creating a business plan an overwhelming task but an opportunity. A business plan, if written properly, is going to help you in monitoring and improving the areas that wouldn’t perform as per your expectations in the future.
2. Get properly licensed
Depending on the legal requirements at your place, you may or may not require a license to operate your tire shop. If you do require, you might want to talk with other local tire shops about the same. You shouldn’t shy away from asking them how did they acquire the license from the city authority.
Whether you need to get licensed or not, you certainly require to open a current account in a bank and have a TIN number ( registered on your name ) available.
3. Estimate and get your investment
You don’t need expert help in understanding what you need to invest for 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, etc
You would require additional costs 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.
4. Where to establish your tire store business?
You don’t need a full day to think about where to establish your tire shop. It is easy. You need to set up it on a roadside but make sure the road has reasonable 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.
5. How to buy tire inventory from a supplier?
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 some of the popular tire manufacturers.
You may also want to sell retreaded tires to drivers who don’t either due to financial constraints or simply don’t like to buy new tires.
6. Ways to advertise your business
You don’t need to spend money on a television advertisement. However, you will have to create a signboard with the help of a local painter 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!