BizplaniKo company offers services for the development of a business plan for a car dealership with financial calculations and a presentation to attract investment. On our website you can order a service, familiarize yourself with our experience and customer reviews, as well as download a ready-made business plan template for opening a car dealership from scratch.
Raised investments in the amount of 120 million rubles and opened a store. In the process of work, we received a competent detailed business plan: a detailed description of the investment, a sales plan, an assessment of the market and project payback.
Gary Spartakovich, Grocery Supermarket Owner
I was very pleased with the efficiency and professionalism of the specialists. The high quality of this project made it possible to positively resolve the issue of financing. As a result, we received a loan in the amount of 200 million rubles.
Rakcheeva L. Financial director of wholesale clothing trade.
Based on the business plan, we opened our own production of drywall in the amount of 20 million rubles. The business plan contains a lot of useful information on our new line of business, the financial part is well developed. The business of the main competitors is described in great detail.
Arzhanov A., Director of drywall production
With the help of a business plan developed and drawn up by BizplaniKo, a long-term credit line was opened for this project for 5 years in the amount of 50 million rubles. for the wholesale of fuels and lubricants.
V. Ponomarev, owner of the company for the wholesale trade of fuels and lubricants
I was very surprised by your thorough approach to business analysis, with the development of a complete financial plan for investments and a schedule for their repayment.
Brief Investment Memorandum
Starting your own car sales business (car dealership) can bring good profits if properly managed. A number of factors correspond to this. First, despite the declining economic growth and the decline in the population's ability to pay, people always buy new cars. Secondly, most car dealerships are currently closing after the past crisis in 2021-2021. This opens up a large market share that new players and dealers can take. These factors are reflected in the payback period of the project, which is 19 months, the break-even point falls on the 2nd month of the car dealership.
To implement this project, you will initially need to acquire your own land plot and build a building. It is necessary to search for a land plot along major city highways and on streets with high car traffic capacity. Thus, the area of the land plot, taking into account the warehouse for cars, is 100 acres, the area of the car salon is 700 m2. In addition to the construction of the building, it is necessary to hire 24 specialists on the staff.
The car dealership will sell economy class cars. Also, the car dealership will provide maintenance services, a car parts store and a tire fitting department.
The amount of initial investment - 17,932,000 rubles
Monthly profit - 920,000 rubles
Payback period - 19 months
Break-even point - 2 months
Return on sales - 9%
Description of business, product or service
After the past crisis in 2021-2021, the demand for cars is gradually increasing. This is due to the growing demand for cars, as well as the availability of car loans. These factors open up great prospects for opening your own car showroom.
Opening a car dealership, like starting any other type of business, is right to start with developing a business plan, defining a strategy, choosing partners and suppliers, finding a point of sale location and purchasing the necessary equipment. Before opening a car dealership, it is imperative to objectively assess the features of working in this niche with its advantages and disadvantages.
The creation of such a trading organization requires a significant investment. To make the investment return faster, experts advise to accompany the sale of cars with the sale of spare parts and the provision of additional services. So, if the budget allows, it will be effective to open a car dealership together with a service station.
When choosing a point of sale location, you should:
- pay attention to those regions where competition in this sector is minimized;
- consider the possibility of selling used cars, as today this niche is quite high demand.
It is also important that when selling a used car, financial investments will be much smaller, and the monthly net profit, depending on the turnover, will be approximately 100,000–150,000 rubles. This will allow you to return your investment within a few months of work.
Lack of profit for the first 3-4 months should not be scary, even if covering the costs will cause significant difficulties. With the development of its client base, the business will begin to develop rapidly and begin to bring the expected income.
Pros and Cons
An adequate assessment of the advantages and disadvantages of a business, carried out before opening a car dealership from scratch, will help to make the right choice and determine your real opportunities.
The advantages of doing business at a car dealership include the following factors:
- Continuous growth in demand ensures that there is a sufficient potential customer base for both new and used vehicles.
- Opportunity to increase income through the development of related business areas, such as the sale of spare parts or the provision of repair services.
- Before you open your car dealership from scratch, you do not need to get a higher or any specialized education.
- High income opportunity.
- To develop a client base, it is enough to develop and implement the correct marketing strategy.
The main thing is that car trade is a predictable type of business with a high level of stability.
There are only two drawbacks to car trading:
Opening your own car dealership is a risky and costly business that requires a lot of effort. Before the start of the automobile business, it is necessary to analyze the size and solvency of the population of the area in which the center is planned to be located.
Only after a thorough study of the demand, the number and specifics of the work of the existing car dealerships, it is possible to draw the correct conclusions about the need for another similar building in this place. How much needs to be invested in the construction of a car dealership, how soon can it pay off, and what pitfalls in this business can be? So how to start a car dealership from scratch?
The opening of a car dealership involves not only the sale of cars, but also the provision of services for their repair. The client is more likely to trust the dealership where it was purchased to service the recently purchased vehicle than to private car services.
A substantial part of the profit comes from the sale of spare parts and related accessories for cars: spoilers, carpets, protections, covers, radio tape recorders and so on. This is an average of 20-30% of total income.
When opening your own car dealership, you should not limit yourself to selling cars, it is recommended to organize an authorized service station (service station), open a shop of spare parts and accessories.
For the successful conduct of such a large-scale business, it is recommended to draw up a business plan, based on which to further promote your "brainchild".
You can become a dealer by completing a number of activities:
2. rent or buy a plot of land;
3. rent or build a building for a car dealership;
4. find suppliers, purchase machinery and equipment;
6. conduct a major advertising campaign.
Commerce is always profitable. If we talk about the auto business, here you can also organize a fairly profitable business for the sale of vehicles. According to experts, this industry has had stable performance over the years.
Of course, your car dealership can bring excellent profits, but it will also require significant funds. Given that a large proportion of the revenue comes from the sale of various accessories and parts, it may be worth planning this in addition to the main store. Remember, the amount invested in a business can vary, but it will always be quite high. In addition, you should be patient, because, as a rule, the enterprise pays for itself at the earliest in three years. Although on average this figure is about five years.
Opening a car dealership requires careful planning and calculations from a businessman. Usually such an undertaking requires writing a business plan, which will form the basis of the whole business. Such a document will help to realistically assess the feasibility of the idea and determine the specific amount required to launch a startup. You will also need to choose the models with which you will work and determine the format of the business. This will outline the circle of future suppliers.
It is optimal if you stop at those car brands that are not officially represented in your city. However, it is necessary to focus on the possible demand for these products. Of course, elite models are unlikely to be successful in a small town.
Manufacturers often help their dealers determine the location of the showroom and the main sales strategy. It is very important to negotiate with potential suppliers at the stage of planning the case in order to take into account their wishes and conditions. Of course, you will have to adjust the business plan as well. Now let's look at all the details of how to open your car dealership from scratch.
The first thing to decide on is the location of the salon. You need a room located directly at the transit road, facing it with a facade. Of course, the building should have large display windows and good driveways. If such options are not offered in your city, the right decision would be to rent or purchase a plot and build a room yourself, taking into account all the nuances and wishes of the manufacturers.
Here, experts advise, nevertheless, to acquire a land plot and a building as property, since later it may require a large-scale reconstruction. At the same time, the minimum size of the territory should be half a hectare in order to accommodate everything you need.
The exterior of the salon should attract attention and stand out against the general background of the building. As for the internal layout, it is advisable to provide an exhibition hall, premises for a warehouse of small accessories and spare parts, offices, a service department and a place for obtaining a loan for purchases. Equipment of the technical department and the main hall is usually carried out in agreement with the main supplier. The interior design will need to use the main colors of the company, its logos and other important brand elements.
As a rule, these costs are quite substantial. However, by doing a building retrofit according to the manufacturer's requirements, you demonstrate a willingness to work together and show the viability of your project.
Selecting the registration form
Of course, such a large-scale start-up needs mandatory registration. You should start with the tax office. For such an event, experts consider the optimal registration of a JSC (formerly LLC), and not an individual entrepreneur. Of course, this form deprives you of the opportunity to use the simplified taxation system, but it is most acceptable in this area of activity. By the way, you will have the opportunity to design a service center as an individual entrepreneur, although, according to most experts, this is not necessary.