Whether it stems from a passion for cars, an identified opportunity or an entrepreneurial mindset, you might be looking into starting a business in the motor trade. This can include opening up a car dealership, repair garage, restoration company or valet service. In any case, one thing remains for certain – this is no small endeavour.
The automotive industry is known to be unforgiving and expensive to enter. But no less true is the fact that there’s huge earning potential. As with any business, you also have the freedom to work on your own terms while doing something you love. One of the most important things you should do at an early stage is to prepare.
The more prepared you are, the more likely you’ll be to avoid costly mistakes and establish a successful business. Start by asking yourself the following questions and taking action accordingly.
Do You Have a Business Plan?
A business plan is worth the time for numerous reasons. For instance, given the high cost of starting a motor trade business, you’ll likely be seeking financial assistance from an investor. Having a solid business plan that details your forecasted trajectory is imperative to securing the funding you need.
Moreover, you’ll have a much better idea of what to do moving forward. You’ll be able to identify weak spots, set achievable goals and simply be more prepared overall, so be sure to write one up.
How Much Capital do You Have?
Following the above question, chances are you’ll require financial assistance at some point or another. Consider your current situation and from there, take some time to identify a viable funding option. This can include friends and family, angel investors, venture capitalists, microloans and crowdfunding among other means.
Are You Insured?
Liability is a major issue for many automotive businesses, which is why it’s important to invest in motor trade insurance as soon as possible. This will help protect you and your company from inevitable and otherwise costly mishaps.
You can find cheap motor trade insurance on Quotezone.co.uk, which is a comparison website that allows you to weigh up the best providers to find the most suitable and affordable option for your business. Simply fill in a form and they’ll take it from there.
Can You Specialise?
After settling on a certain sector of the motor trade industry, it’s a good idea to look into how you can specialise. This allows you to hone in on a specific target market and offer a superior value proposition, among other benefits. After all, if there are already five repair garages within a 20-mile radius, yours needs to be offering something the others don’t.
How Will You Market Your Business?
While it’s true that most automotive businesses rely on word-of-mouth to obtain new customers, it’s important to look into other marketing channels that can provide value to your company. There are many affordable solutions in digital marketing that can help you get a head start.
Remember that adequate preparation is key. It might be worth hitting the brakes for a while to consider everything before opening your doors.