Owning a tire store may be a great way to earn money from all those vehicles owners who look for new and fresh tires in your locality.
When all those people who own a vehicle realise the dangerous situation of their existing tires, they resort to the work of replacing them with new tires by looking for tire shops. You may want to open one such tire store where people would come for buying new tires from you for their vehicles.
See, tires have a short lifespan for the fact they are subjected to the frequent and deadly road beatings as compared to the other parts of a car or any other vehicle. No matter, how good the condition of a road is, tyres are subjected to the fast wear and tear and as a result they need to be inspected and replaced on a regular basis.
Tire business offers you vast opportunities to make money for your family. Selling tires isn’t the only way available to fetch money from customers, you can step beyond and offer a few tire related services such as tyre inflator service, puncture services, etc in your shop. So, are you ready to launch your own tire shop business? If Yes, let me get you into the details of starting a tire shop in your locality.
Pros & cons
When you operate a tyre store, you will be facing a lot of challenges and at the same time you will be enjoying opportunities as well like all those people who face them other businesses. Opening a tire store comes with the following outlined advantages and disadvantages.
Advantages
- You don’t need to pursue any special qualifications
- Likewise you are not required special skills
- You can start with a small budget given your financial capacity.
- Even you will be enjoying a few utilities.
Disadvantages
- The competition for tires is fierce allover the place.
- It is difficult to manage your tire stock for all types of vehicles.
- You would be required business registration and compliance with other legalities.
Daily routine at work
You won’t be relaxing on a chair like you do on a beach rather your every day will start with greeting customers and serving their needs with the best possible solutions. It will be followed by a series of activities- inspection, removal, and replacement of tires.
You will moreover keep the daily records of your sales, services and costs you would be incuring during the process. Your daily book should record – what goes for costs and what comes in revenues from your customers. You also will be directing your labour toward their assigned works during your office time.
Write a business plan
The purpose of launching a business is to earn profits from investment and profits come when your business is properly guided toward success. The right direction matters a lot in finding success for your business and that is exactly what a business plan does for you.
A business plan offers you the luxury of safety during the bad times and exponential growth during the good times. When you have a plan, you have an assurance to safeguard your business from potential threats in future and cherish profits from sprouting opportunities.
Three things that are very important to include while you write a business plan for your tire shop are – project worth, project cost, and project returns. Project worth is about making an overall assessment of profits you are supposed to make in your business. Consider variables that are likely to affect your business profits – customers, competition, and suppliers. Let me give you an example – If there are 200 customers in your locality who own a vehicle, would they make you able to earn a decent amount of money while buying tires from your shop? Is it worth to serve their needs by investing your money? Suppose, if you supposedly invest ₹5 lacs in your business, you should be able to make a 10% margin from it apart from getting your principle investment back to your account.
If your business faces low competition, you have brighter chances of emerging as a leader in your locality unlike fierce competition that won’t allow you get your neck out of the mud. You would definitely make money buy it would a slice of a larger chunk of profits that would go into the pockets of many people who own tyre shops. So, a smart way to come out as a winner in a competitive market is either to focus on underestimated niche or place your store in a low competitive area.
The supplier part should not be overlooked either for the fact suppliers can make or break your business. Work with some good suppliers who will deliver you what customers look for their money.
Project cost includes all those expenditures that are very important in order to setup your business. Make a chart that defines your cost structure required for your most important things. It should cover costs that would go for shop rent, labour, supplies, and daily expenses you will need while delivering your services.
The project returns part would make you deal with the marketing strategies, sales, and revenues. You would be working on efforts that will help your business to be found by your customers, and at the same time make them feel comfortable while they buy from you. Sales part is all about looking after customer conversions and their experience with your products. Revenues, would includes money collections from customers and their proper record in a book.
Get your licence
Give your business legitimacy i.e make yourself someone who won’t have to face legal objections as obtaining a business licence would shield you from untoward complications. If your local law demands, get all the important licences and permits. Talk to already established tire business owners for the process to obtain your business licence. You may also need a TIN number in India and open a CA in your local bank so that you are able to procure inventory from suppliers.
Get your investment
You don’t need to be an expert to know what you should buy to start a tyre business. Even a child can tell you that you need money for inventory, rent for a storefront, and the tools you need to change and install tyres. If you don’t already have them, you would also have to charge extra to buy the tools and equipment you need to offer additional services like air pumping, fixing flat tyres, and wheel alignment, if you don’t already have them.
Choose a location
You don’t need an entire day to find out where to open your tyre business either, which is another thing you don’t need to accomplish. It’s not hard at all. Place it on the shoulder of a road, but check to see that the road catches a fair amount of traffic before you do so. It is also essential to ensure sufficient space for vehicles to park. However, use great caution regarding the terms of any agreement you make with the landowner. Include words that will assist you in avoiding difficulties as rapidly as possible if you ever need to move.
Buy your inventory
Determine which brands have the best industry reputation and get your tyres supply from those manufacturers. Famous tyre manufacturers in India include Cooper in the United States, MRF, APOLLO, and others, and these manufacturers have received many excellent ratings. You may also choose to offer retreaded tyres to motorists who cannot purchase brand-new tyres owing to budgetary restraints or prefer not to.
Advertise your business
A financial investment in a commercial that will air on television is not required. However, you will need the assistance of a local painter to make a signboard and hang it on the upper front of your storefront side. However, ensure that your company name, contact information, and any other information you want the painter to write on the board are legible. Thank you!
