Running your own business is essentially becoming your own boss– who wouldn’t like that? Your business could be anything in the market but the best one to put up is something you are enthusiastic about. That is, if you are into cars, you’d most probably want to enter the car business although it may be challenging if you do not know how to start.
To help you reach that dream, here is how you can establish and run your own vehicle dealership:
Decide What Type of Dealership and Services You Want to Specialize In
The first question you should ask yourself: what type of car should I sell and specialize in? Determine if you will sell new vehicles or used ones. Perhaps, you want to get the best of both worlds and do both. New car dealership would demand you to be prepared financially because it requires shelling out a larger sum for your initial investment.
In selling used vehicles, you spend less on investment but you have to specialize in the assessment and appraisal of a vehicle. You also need to invest in tools and equipment for revamping and improving the car to increase its marketability and presentation.
You shouldn’t stop at deciding the type of cars to be sold, but you should also consider which car company and brands you want to partner with. Choose a company with whom you share the same vision in order for you to be on the same page in the long run of your partnership.
Additionally, a car dealership is an opportunity for you to offer other services to your potential customers. You could also sell car parts and accessories, repair and maintenance, and even a car wash. You will eventually have to cater to the needs of your customers and this could open a multitude of business propositions in the future.
Make a Business and Financial Plan
If you don’t have a concrete and well-thought-out plan in running your business, you are bound to fail at some point. Preparing your business plan and financial plan is like devising a manual of instruction on how to start and run your business. This will demand you to conduct feasibility studies and assessments to get to know the market and your customers better.
A financial plan will enable you to calculate and allocate funds more effectively. This would also set the ceiling of how much you could afford to spend and how many years it would take to return the amount of your initial investment. This will also plan out your preparation expenses and operational costs.
Prepare Important Documents and Licensing
The decision to pursue a vehicle dealership will take you to your bank, either to check on your hard cash or to secure yourself a loan. Either way, this is a part of the important processes and documents you have to prepare. Financial disclosure is just the beginning, you have to secure a dealer’s license and a business license atop many more licenses and documents required both by the law and the private companies you want to franchise or partner with. It is important to note that the requirements would differ on the type of dealership and location you are going for.
The legitimacy of your dealership would allow you to advertise your company efficiently and would claim the credibility of the brand you partner with. Experts from Windsor Ford, a car specialist from Alberta, Canada advised that a company has to be supplemented by licenses to operate and exclusive dealerships to be able to produce only the highest quality of products and services. This is another benefit of the dealership, you provide the customer service expected from the brand you chose because you present the quality they have as well. Processing these papers is not just one of the most tedious processes but time-consuming and expensive as well. At this point, you would have to acquire the help of your business partner, lawyer, and financial advisors.
Aside from documents and licenses, you also have to secure your financial bonding and insurance. Bonding would be the safety net that will protect you as you bind yourself to contracts and business transactions. Insurance will protect you from damages and losses that you might incur.
Choose the Best Location for Your Business
Choosing the location is choosing where you’ll house your cars and services. This is important as this will act as your showroom and business office. This will be another expense you have to include in the planning of your business. In choosing a location, you consider accessibility and visibility as well. You will likely draw more customers if more people are able to visit your place and see what cars you currently offer. This is the reason why almost all car stores have glass walls and elaborate displays. Your location is your best advertisement.
Advertising is your way of attracting and convincing your customers to buy from your company and to avail of the services you offer. It is a must that you promote your brand that it reaches the homes of your community and the recommendation of those who make reviews or announcements such as the radio, television or social media. One important aspect is setting up your website that would showcase your complete profile, current products, and offered services. This is also where you can upload pictures of the cars currently housed in your store.
Learn the Trade and Ropes of the Business
It is not just enough that you are a great businessman but also an expert tradesman. You have to learn the ropes of the business by studying it yourself. From planning, execution, and running the business, you should be able to handle the process on how to sell a car with the help of your experts and employees. This is not just a part of sales talk but it establishes you as the authority in the business. You would be able to handle conversations and give recommendations to your business partners and customers.
Starting a business is a milestone that is both a huge risk and achievement. It allows you to work on something you really love, in this instance, cars. It also allows you to manage your own time, choose the partners you like, and establish yourself where you want to. This business is going to be a challenging start but once the road opens, it will lead you to great opportunities and experiences ahead.