Car dealership business plan example
Speaking about how to open a car dealership, we note that the business is not in a state of strong decline or recovery. The business remains stable enough to attract new entrepreneurs. And if Moscow and St. Petersburg are fully occupied by large dealers, the regions remain unoccupied, where the entrepreneurial gaze can be shifted. They have a solvent audience, while there is no strong pressure from competitors, which is considered an excellent option for developing a business.
Nuances of a business idea
Before you start making plans for the opening, you need to understand all the intricacies of the idea. To open a salon will require a large start-up investment, the return on which can be significantly reduced by combining a retail outlet with various services. For example, you can sell branded spare parts for cars, various accessories, and offer service station services.
To start a profitable business, you need to pay attention to the choice of location:
- The best option is a region where the level of competition is minimized.
- Also, in addition to the sale of new cars, it is necessary to consider the possibility of opening a used car dealership, because there is a demand for used cars.
Also, when selling used cars, the size of the start-up capital is significantly reduced, which makes the business more attractive for new entrepreneurs. On average, on such sales, you can reach a net profit of 100-150,000 rubles per month. Thus, all the money invested will pay off in just a few months of work.
It is also important to remember that until the client base is developed, the salon can operate at zero or at a loss. The first 3-4 months can be difficult, but if an entrepreneur can withstand them, then in the future the business will start to make a profit and develop.
Pros and cons of opening a car dealership
Before an entrepreneur decides to start a business, it is necessary to conduct a full assessment of all the existing pros and cons of the business. This will help to think over a business plan, build it on the strengths of the idea.
The main negative features of a business idea are:
Reviews of the car dealership business plan ()
The main thing about the business plan of the car dealership in the year
How to open a car dealership for newbies in business
Newcomers to the automotive business have a hard time - a common knowledge. Affected by the lack of experience and necessary knowledge, without which it is very difficult to take the first steps. How to start your auto business and make the most efficient use of investments - the result of a grandiose project directly depends on the solution of these issues.
The car business requires a significant initial investment, and it is very important to manage every dollar wisely. First of all, you need to decide which cars, in fact, you will sell. Next, you should decide how you will implement your plan. You can build partnerships with any car plant, or purchase a franchise for a specific company.
It should be noted that car manufacturing companies prefer to cooperate with people who have some experience of such activities. In addition, the priority will be given to businessmen wishing to open their own business - an auto center - in a city where there is no official representative office of this company yet.
The main feature of the opening of a car dealership is grandiose financial investments. A modern car shop must meet the highest requirements. During the construction of the center, it is necessary to provide for the presence in it not only of a warehouse or trade area, but also of a service center, a showroom, premises for resting customers, etc. In addition, all the wishes of the manufacturer should be taken into account: the use of the elements of the company's symbols in the decoration, standard color solutions in the interior design, and so on.
According to experts, a businessman will need from 2 to 5 million dollars to launch a new auto center, depending on its location and the scale of trade. In addition, a businessman must have some financial reserve sufficient to maintain a stock for at least two weeks. At the same time, it will not be easy to achieve high profitability and payback of a car dealership.
The main risks of opening a car dealership are associated, as a rule, with the lack of experienced qualified specialists on the staff. Sales managers, sellers, administrators working in the sales area are those people whose professionalism directly affects the reputation of a car dealership and the amount of its profits. If you are unsure whether you will be able to assemble such a team on your own, find an experienced HR director to help you with this task.
Where to start a car business if you have no experience? There is only one correct answer to this question - by studying a professional business plan for a car dealership. After getting to know him, you will find out how your business will develop if you open your own salon, guided only by theory. In this document, you will find the most important information on the sale and purchase of cars, and you will understand whether it is worth opening your own auto business, and what you can count on.
Organization of a car dealership: how to become a car dealer
The products of the Russian car industry, despite all the efforts of the domestic manufacturer, are not in great demand among the consumer. In this competitive struggle, foreign-made cars are increasingly gaining the upper hand - mainly due to higher quality, and therefore more reliable operation. All this has a significant impact on such a market segment as the car trade.
An investor who decides to invest his funds in opening a dealer center can count on a significant profit. This is evidenced by the interest shown to the domestic market by world car manufacturers, as well as by the popularity of foreign cars among domestic consumers.
What could be nicer than owning your own car dealership? Sign a dealer agreement with a car plant, build a car dealership and meet paying customers.
Of course, this is a very simplified scheme for opening a car dealership. First, let's get down to writing a business plan. This will help you determine the perspective of a given business idea.
To open a car dealership, first of all, you need a room:
1) room of 300 sq. m (at the rate of 30 sq. m for each car), for insurance companies, representatives of banks and car service, the same amount.
We need to think over the layout: showroom, auto parts store, office space, reception, service center. Take advantage of the advice of experienced professionals on how to arrange the premises for the convenience of customers.
The construction of such a dealer complex will require an investment of 25 million rubles.
More than a million dollars - in the city center. $ 5 million will be required with a maintenance center.
2) A more serious option (assortment of imported car brands) - more serious figures - up to 300 million rubles for the construction and equipment of a car dealership.
3) However, to begin with, you can get by with a less luxurious option: arrange the existing suitable premises in accordance with the dealers' requirements.
This option is most likely suitable for a domestic manufacturer. This will reduce your costs by at least half (up to 15 million rubles).
The dealer is responsible for the advertising campaign (at his expense). Each month this is a considerable amount of expenditure. However, the distributor will provide advertising handouts (layouts, brochures, videos for broadcast).
Both beginners and experienced entrepreneurs have to deal with drawing up a business plan for a car dealership. However, 9 out of 10 documents are not even worth the paper they are printed on, since their implementation, at best, will not lead to the solution of the assigned tasks, and at worst, it will undermine the stability of the company. Let's figure out how to develop an effective plan that gives the company an impetus to development, allowing it to take its rightful place in its market segment.
Any business plan begins with a resume. It briefly highlights the main idea of the project, indicates the execution time, the person in charge of its implementation. The resume consists of 2-3 sentences that must interest the addressees, encourage them to continue reading the document.
Purpose and objectives of the business plan
The business plan of the car dealership is drawn up to assess the economic efficiency of the project. It is also used as a commercial offer for negotiations with prospective partners or investors. The document must sell your idea, and not just testify to its existence and viability.
The purpose of opening a car dealership is to create a highly profitable trading enterprise that brings profit to the owners, satisfying the needs of customers in services for the purchase or rental of cars of different classes and price categories. It is possible to achieve the goal by solving several problems:
defining the format of the business;
calculating the payback period of the project;
defining the stages of implementation of the plan;
establishing the economic efficiency of the project.
Car rental market analysis
The car rental service has existed in Russia for a long time, although it has not yet become widespread in the regions. Today, approximately 80% of car rental contracts are concluded in Moscow, St. Petersburg, and the cities of the Krasnodar Territory. Business is gradually penetrating into other regions of the country, therefore, offices that provide car rental services are opening in cities with a population of over one million. According to experts, the capacity of this market segment by 2021 should be about 6,300,000 rubles.
If a novice businessman wants to start a major entrepreneurial activity, he needs to think about opening a car dealership. Despite all the nuances and difficulties: from developing to implementing a business plan for a salon, you can earn a lot in this field of activity. But, before engaging in such commercial activities, it is necessary to carefully study the automotive market of the region where the salon will open.
Why a business plan to open a car dealership can be a profitable project?
Today, the automotive market in Russia is filled with demand, which is constantly growing. Therefore, a business plan to open a car dealership can be a very profitable project. If you approach it wisely and know all the intricacies of the market, even a high level of competition will not prevent a novice entrepreneur from developing his business.
At the first stages of opening a car dealership, it is worth considering the niche of selling used cars or economy class. This is due to the fact that although there is a great demand in this market, not everyone is ready to buy expensive cars. It is also necessary, in parallel with the business plan of the car showroom, to develop a project to open a neighboring service station and auto parts store.
Competition in the automotive market
Opening a car dealership is a profitable business, but it will be very difficult for a newcomer to it. The high level of competition forces aspiring entrepreneurs to take two paths:
- Will join an already existing, “dying” company.
- Take a unique niche, develop an original business plan.
It is very important to carefully analyze the supply and demand market. It is necessary to study the strategies of actions of already well-known and well-promoted companies, to understand their strengths and weaknesses.
Both legal entities and individuals can become clients of the car dealership. The former can make a wholesale purchase of cars for employees, while others select cars for personal use. Therefore, it is necessary to carefully consider the assortment for both categories of buyers. For corporate purposes, economy class cars from good manufacturers, but with basic equipment, are suitable. But it will be much more difficult to surprise and interest a private person. He needs to create an original offer that he cannot find in another salon. Here it is worth developing a system of bonuses, promotions and other lucrative offers.
Commercial organizations can also be provided with pleasant bonuses in the form of discounts for bulk purchases.
Also, before creating an assortment for sales, you should carefully study the target audience of the region in which the opening of the car dealership is planned. Professional marketing research will show which car brands in the region are most in demand and the financial capabilities of potential buyers (average income).