Starting a retail business in automobile industry is a promising prospect. There are many businesses in the auto sector that you can start. One of the most lucrative is automobile spare parts business. It boasts of a high success rate because of its wide-spread customer base.
We will discuss in detail auto spare parts business project plant for acquainting you with important aspects of the business. For starting the spare parts business, it is imperative for entrepreneurs to have a solid plan for better success.
There is no denying the fact that it is a rewarding business with India having over 253 million vehicles. The more vehicles there are the more the need for spare parts and servicing. You can also start retail spare parts store with a workshop that allows customers to buy spare parts and get repairs done.
Planning the business is the best strategy for entrepreneurs for succeeding in the success of the endeavor. It is the first step in right direction which will ensure there are no unseen or unplanned glitches in putting your ideas into operation.
However, we recommend that one should get a detailed automobile spare parts business project report. The report will provide you with essential knowledge about various facets of retail business. It will also provide you with reliable information on the feasibility of business in a given locality. You will also get a fair idea about the total investments needed and various permissions.
In the following sections, we will discuss step-by-step details for starting an automobile spare parts business.
Making a business plan
Preparing a detailed plan is the first step for starting any business. It gives you the blueprint for taking timely steps realizing set goals achieving milestones. Moreover, it is also helpful in securing loans from the banks if they find the business feasible.
Developing the plan is must because it will have all important information including how the startup capital will be arranged. The plan will contain valuable information regarding running the business and maintaining the necessary cash flow.
It is also very necessary that the plan must have reliable information on the availability of spare parts, target group and area feasibility.
It is also extremely important to consider the various aspects of automobile spare parts business discussed below:
Only selling spares parts
It is a kind of business where you decide to sell only the spare parts either by retailing or wholesale. It would depend which one you choose. Specialization is also available depending upon funds and choice. There is an option for dealing in spare parts of light vehicles including cars or heavy vehicles such as buses and trucks.
Running a retail store with a workshop
It is another money-minting specialization of automobile spare parts business. In this business model, you can sell spare parts besides doing servicing and repair of vehicles. It provides multiple services under a single roof.
However, this type of business would need more spaces and more capital. Generally, we want to consider the lease of the retail space, store arrangement expenses and buying the extra parts from the distributer, wholesaler and manufacturing company.
By starting an online store for retailing automobile spare there will no need for a physical location. It can be completely run though an e-store. You can sell spare parts though your website as well as delivery of goods. Entrepreneurs can also deal in spare parts of luxury/recreational/antique car spare parts.
Opening a franchise
Opening a franchise business is now becoming a business of choice for youngsters. It involves opening a franchise of a particular company and selling only their automobile spare parts. Under this type of business model, you can provide spare parts of only one brand or company which have granted you the franchise.
Doing proper market research
It is an important part of starting a business in order to get a grip. Getting a detailed automobile spare parts business is a must as we talked earlier. It will provide you with the important information about the market trends and growth potential.
Studying the report will help you perform better and targeted market research to fully optimize the business. Recognizing the market opportunities is the best way to beat your competition. There is no denying that it pays to understand the potential competition.
Extensive market research aids the entrepreneurs in preparing effective business strategies for achieving growth in the business. If you have excellent strategies there is no doubt that one you would be able to breakeven within months.
As part of your research, you can also identify the spare parts in the local market with high demand. It will help you stock the parts that people look for when something goes wrong in their cars and bikes. It is also beneficial if you collect the data on cars and bikes people own in your area.
Finding retail location
After you have planned for every detail, it is time that you start searching for retail location suitable for your business. It goes without saying that the right location will be ideal for securing and promotion of your business. It is important for you to have an excellent storage space at a suitable location.
On the other hand, entrepreneurs with sound knowledge of advertising with business strategies cut penetrating the market, the location will cease to matter. However, the space must be large enough for storage of spare parts of different models of cars and bikes.
Procurement of spare parts
Procuring spare parts for the store also constitutes an important part of auto business. First, it is imperative that you finalize the parts that you will keep in storage for selling. After identifying the parts, you will look out for the best vendor for purchasing the parts.
Preparing a list of reputed companies selling spare parts for a variety of models of cars and bikes would aid in choosing the best deal.
Getting licenses and registrations
Entrepreneur must have knowledge of licensing and registration requirements for opening a retail spare parts store. The requirements might vary from state to state so you must contact the nodal government authorities for relevant information.
You must apply online for MSME Udyog Aadhaar registration. It is easy and soon your business will get a MSME Udyog Aadhaar registration no. Moreover, you will also have to apply for a license under the Shops & Establishments Act for running your store. Now having GST registration is also mandatory for operating medical oxygen, auto, steel, industrial, rubber or any business in India.
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