There are now plenty of vehicles in virtually every country and the number continues to rise. Vehicles, like any mechanic things, are subject to wear and tear over time. Globally, there’s very high number of vehicles whose parts obviously require repair or replacements over time. This then creates a business idea for retail of spare parts for motor vehicles. Despite whatever the state of the economy might be in, the demand for auto spare parts will always be high. This article will outline how to start the auto spare parts store business, and the auto spare parts business plan – PDF, Word and Excel.
This is an indispensable step in setting up your business. You must ascertain whether or not there’s a market for what you’re contemplating on offering. Just to give you an understanding of the market dynamics in this type of business I shall briefly discuss 4 possible ways of setting up this business. You can choose to establish a brick and mortar/ physical store that exclusively focuses on just the retail of spare parts. Secondly, you can amalgamate the retail of spare parts with an onsite workshop. You can also decide to operate an online spare parts shop as opposed to a brick and mortar one. Lastly you could settle for running the business as part of a franchise.
So why am I saying all this? Deciding on which approach to take will guide your market research approach. The four approaches I earlier on mentioned are indicative of some of the types of niching you can settle for. Carrying out a market research is a form of study that assesses the feasibility of what you’re intending to do. Never forget to study your future competitors already operating in this business domain. Understand which products they offer, their marketing strategies and their customer behaviours. Your thrust in doing so will be to note loopholes and learning points that you’ll capitalize on in making a market entry.
Make sure you have a comprehensive auto spare parts business plan
The failure to plan is the beginning of business failure. The auto parts business plan must be clear and succinct enough to give your potential partners, clients and investors an overview of what your objectives are. At the same time, it must be detailed enough to explain your business well. Your motor spares business plan should have financial statements which show that your business is viable and profitable.
Location And Premises for an Auto Parts Store
Your choice of location is of critical importance with respect to customer inflows. An appropriate location must take into account places where there are good road networks and high vehicle traffic. Your choice must also be done after being absolutely sure that your target area has people with substantial income levels. It would also be wise to scout your intended location and see whether or not there are other players active in the same trade. Once you get comprehensive details on that it’ll help you setup shop in a way that wards off competition.
As can be noticed from some central business districts, such stores can be located in streets lined up with auto spare parts shops. That can be strategic in that you get easily located due to people’s knowledge of the street. However, considering that you’ll be close to your competitors you’ll have to be very competitive. Deciding to locate yourself as a standalone shop can be expedient but do your homework to ensure customer inflows will be easy to mobilize. In general, the best location is in a central business district, shopping centres, or near places or residential areas that have high vehicle populations. The store must be sufficiently spacious with spare parts stacked neatly on clearly labelled rakes or sections. There must also be ample and secure parking space with even a loading bay where applicable. The auto spare parts store business plan should cater for the costs of purchasing or leasing the premises.
Auto Spare Parts Products
Your product range will be hugely based on your targeted market. There auto spare parts market is huge and there several niches which your auto parts business can target. Your motor spares parts can specialize with selling auto parts for only one vehicle make eg Mercedes-Benz, Audi etc. Specialisation can also be according to product lines, eg gearboxes, suspension parts, engines, cooling systems, braking system, tyres etc. Focus can also be made to sell quick replacement auto spare parts eg brake pads, brake shoes, high pressure pumps, filters etc. Other auto spare parts stores act like one-stop stores which sell a variety of products without specialising in anything.
The types of auto spare parts products you can sell are many and diverse. Some of them are bumpers, radiators, filters, batteries, plugs, fenders, ball joints, shock absorbers, body parts, bearings, plugs, lamps and lights (i.e. headlamps, corner lamps, tail lights and so on), sensors, rims, grills, lubricants, amongst others. It’s important to source your stock from reputable suppliers and at favourable prices so as to subsequently price them competitively at a profit. Your auto parts store business plan should obviously cater for the costs of purchasing the products which your store will be selling. You can source your auto spare parts from local and international suppliers.
Staff And Management
This will be depend on the size or scale of your auto parts business operations. At the minimum you need cashiers and store attendants. I can’t overemphasise the importance of having staff that’s well acquainted with auto spare parts and the technical details thereof. Hiring either qualified personnel with the necessary expertise or employees wielding a comprehensive background regarding vehicle repairs and maintenance will be strategic. The staff must also be passionate about engaging with customers, and be good at offering quality customer service and care. Size of management also depends on the size of the business, for small auto spare store businesses, this can just be the business owner. The salaries of all the staff should be budgeted for in the auto spare parts business plan.
Market for Auto Spare Parts Store Business
The market for auto spare parts products is huge due to the high number of cars. The customer base for auto spare parts products include transport companies, organisations, individuals, mechanics and auto repair companies, companies, insurance companies, garages, panel beating and spray painting companies etc. You have to build a loyal customer base so as to get repeat customers. This can be achieved by offering high quality products at competitive prices. Good customer service is also key to winning the heart of customers. Due to the competition from other players, your auto spare parts business should carry out advertising campaigns to make more people aware of its existence. Your auto spare parts store business plan should include a proper marketing strategy to help you boost sales.
Pre-Written Auto Spare Parts Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the auto spare parts store business, we encourage you to purchase our well-researched and comprehensive auto spare parts store business plan. We introduced the business plans after discovering that many were venturing into the auto parts business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global auto spare parts business plan will make it easier for you to launch and run your auto spares business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the auto parts business.
Uses of the Auto Spare Parts Business Plan (PDF, Word And Excel)
The auto spares store business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your auto parts store business
- As an auto spare parts store business proposal
- Assessing profitability of the motor spares business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Auto Spare Parts Business Plan (PDF, Word And Excel)
The auto parts business plan include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Industry Analysis
- Market Analysis
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in the auto spare parts store business fail, so that you can avoid their mistakes
- Ways to raise capital to start your auto spare parts store business
The auto spare parts business plan package consists of 4 files
- Auto Spare Parts Store Business Plan – PDF file (Comprehensive Version – 68 Pages)
- Auto Spare Parts Store Business Plan – Editable Word File (Comprehensive Version – 68 Pages)
- Auto Spare Parts Store Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
- Auto Spares Parts Store Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Auto Spare Parts Business Plan (PDF)
Get the Auto Spare Parts Store Business Plan (PDF, Word And Excel)
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