How to open an auto parts store from scratch
In our previous publications, we have already discussed the issue of organizing a business in the automotive sector. You already know how to open a car service from scratch and how to start a trucking business. Now it's worth talking about such an attractive way of earning money as opening an auto parts store from scratch. In this article, we will discuss all the nuances of this type of activity, the pros and cons of the auto parts business, and also calculate the approximate costs and potential profits.
Where to start an auto parts business?
Due to the growth in the number of vehicles, in the modern world, naturally, there is a demand for auto parts, complete sets and accessories for cars of all kinds. The business of selling auto parts is a fairly profitable way of earning money, which guarantees a stable income and high profits. But the problem is that the competition in this field of activity is quite serious, and this stops start-up entrepreneurs from trying their hand in this particular niche. But despite the competition, it is quite possible to achieve success, the main thing is to competently approach the implementation of your business idea.
How to start an auto parts store from scratch?
Aspiring entrepreneurs are wondering about the possibility of opening an auto parts store from scratch. Is this real and how to achieve success without a large start-up capital?
I would like to note that it is quite possible to open your own business from scratch in the automotive field. How to do it?
Home auto parts business
Naturally, you will need money to buy auto parts. Where can I get them? Believe me, there is a way out even from this situation. All you need is to find reliable suppliers of quality auto parts, preferably working directly with the manufacturers. Thus, a customer orders a specific auto part or accessory from you, and you buy it directly from the manufacturers. Your earnings are a margin. That is, you buy a product at the same price, and sell it at a higher price, the difference between selling and buying is your earnings. It will be difficult at the initial stage, the main thing is to earn credibility and earn the trust of buyers. Therefore, the product you are selling must be of high quality.
With a competent approach, after a year, you will receive regular customers and good profits, and over time, you may well be able to open a full-fledged auto parts store.
Business plan for auto parts store
When drawing up a business plan for auto parts, you must take into account such economic characteristics as demand, competition, profitability, payback periods of the business.
There are many options and perspectives here, depending on your vision of the situation, as well as in which segment you prefer to work.
Although, regardless of the definition of market segmentation, any auto parts store definitely has a future, and a very good one.
After all, regardless of the class of the car, its age and technical condition, any car needs regular care (at least minimal) and maintenance.
The correct steps to open and organize the work of a car shop will help its owner to constantly be in a state of "surplus" and receive the desired profit. So what do you need to open an auto parts store?
Strengths and weaknesses of this business
Knowing such moments can warn the future owner against possible mistakes.
- Seasonality. This is a fairly stable area of work, but at the same time, some seasonal fluctuations in the sales of spare parts for cars are still observed. The intensity of seasonal fluctuations depends on the market segment you choose and the specialization you set for your store. But that's not all.
- Dollar rate fluctuations. This is a particularly relevant topic today. In this regard, the specialization of a car shop for servicing domestic cars looks quite promising in terms of business. And not only because domestic spare parts are less subject to exchange rate fluctuations. It is a fact, but domestic cars also need spare parts more often than others.
It turns out that even climatic features can play a role here: a cold, snowy winter will force more car owners to refuse to use them for a while, respectively, and service them. This situation can serve as an example of how to diversify risks as much as possible in order to avoid such troubles.
An approximate cost structure for an auto parts store might look like this:
Many novice businessmen are interested in the question of how to open an auto parts store. This is a fairly profitable business, but it requires a lot of investment.
Auto parts will always be in great demand, so such an enterprise will bring an almost guaranteed source of stable income.
Premises for auto parts store
You should start by choosing a suitable room. If you plan to open a small store, you will need an area of about 40 square meters, while part of this area needs to be allocated for a warehouse.
At first, it is recommended to rent the premises, but with such a condition that you can buy this property in the future.
The premises should be located so that there are busy roads with a large traffic flow nearby - this will attract drivers passing by.
This is a very important point. The selection of a place for a room must be taken carefully. If there is no suitable premises in the right place, then it is better not to open the store or to postpone the opening.
It is recommended to hang a large bright sign on the store, which will depict a wheel or other part of the car, so that even from a distance it is clear what is being sold here.
If there is an opportunity and such advertising is not expensive, then it is better to launch an advertisement for your store on TV. The option is relevant for small towns.
Dear visitors, we bring to your attention an example of a business plan for an auto parts store with economic calculations. This sample was created by experts in the development of business plans and can be an example for drawing up your project.
In addition, the calculations are made in Excel format, you can see them directly on the site. If you have any questions, you can ask us by mail, in the VKontakte group or below in the comments.
Purpose: Organization of a shop of auto parts for passenger cars made in Japan, South Korea and China in a city with a population of over 300,000 people.
Objectives: opening a shop for automotive spare parts in the city area adjacent to the business center (where car dealerships, service stations and repair shops are concentrated).
The opening of an auto parts store is planned for credit funds and savings of the main founder - a car enthusiast without experience in this area, the owner of a chain of household goods stores. In order to increase the competitiveness of the business and the correct selection of the product range, an expert with experience in administering an auto parts store will be involved in the project, who will not contribute his own funds to starting a business, but in addition to salary, will receive a percentage of the proceeds - 3%.
The volume of investments for the opening of an auto parts store is planned in the amount of 4 million rubles. Most of the costs will go to the initial purchase of inventory - 3 million rubles. Additionally, it will be necessary to cover the losses of the first five months of work in the amount of 715,000 rubles. Fixed capital investments are not so significant - the premises for the store will be rented.
Principal amounts of investments by cost directions:
- Opening an LLC and a settlement account in a bank - 20,000 rubles.
- Redecoration of the trading floor and utility rooms - 220,000 rubles.
- Obtaining permits from Rospotrebnadzor, SES and fire inspection - 70,000 rubles.
- Ordering the production and installation of a backlit sign above the entrance and a banner on the facade of the building - 50,000 rubles.
- Purchase of equipment, office furniture and appliances - 520,000 rubles.
- Initial purchase of goods - 3,000,000 rubles.
- Advertising costs for the first six months of work (placing a banner, printing leaflets, paying for the work of promoters) - 170,000 rubles.
The auto parts store will be located on the first floor of a 6-storey retail and office building. The entrance group (2 separate entrances) is clearly visible from the street with high traffic.
Auto parts store is one of the most profitable businesses in Russia. This is not surprising - while the country has such roads and the auto industry, cars break down and will break down regularly. At the same time, such an enterprise does not require significant financial investments, although it cannot do without costs.
How to start an auto parts store from scratch? First, you should conduct your own analysis of the market segment:
- choose the right area for the opening of the point, preferably without the presence of competitors;
- if there are any, find out their prices, assortment, what goods are in demand, and what lays on the shelves;
- to clarify the client base of opponents - maybe they are collaborating with members of a garage cooperative located nearby. In this case, it will hardly make sense to open a similar store nearby - most likely, most motorists of the microdistrict will prefer to continue to buy from a supplier they already know;
- and finally - it would be nice to draw up a business plan with detailed calculations of expenses and income future auto parts store.
Here you need to decide what kind of goods the outlet will deal with. This is due to the fact that both cars and trucks belong to road transport. Motorcycles, buses, tractors fall under this name - all these categories are simply unrealistic to cover.
Also, at the preliminary stage, you will have to deal with the preparation of a package of documents. It will depend on the chosen form of ownership - individual entrepreneur (you can open it through government services) or LLC.
One of the most important factors in successful trading is the right place. For a store that specializes in the supply of car parts, this might be a sleeping area. Only you should pick up the premises located on the "red line", not in the courtyards - drivers passing by will certainly enter such a store, and not only those who live nearby. For a point with an assortment for heavy truckers, the best place will be a busy highway.
Another example: in a small town where the majority of the population drives Russian cars, it is absurd to open a point with spare parts for foreign cars - collapse will be inevitable.
Another important factor is that there should be a parking lot in front of the store, at least for 3-5 cars. Firstly, most customers will arrive in their cars, and secondly, the buyer may need a bulky part. And if you have to carry it on yourself a few tens of meters, a potential client may refuse an expensive purchase.
The store must have a storage room - for storing a certain amount of the most popular assortment and the volumetric parts already mentioned above. However, there are such options - an ideally located room was found, but without a warehouse. In these cases, it is worth offering customers the delivery of the purchased goods at the expense of the store. True, you have to spend money on a car and a driver. At first, these responsibilities can be performed by the entrepreneur himself.
Space for a shop can be bought or rented. It is worth making sure that the contract contains a clause on the possibility of buying out the area.
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