The growing number of vehicles on Russian roads directly stimulates an increase in demand for their components. Enterprising people know this feature and successfully strive to implement it. We will talk in detail about how to start a business with auto parts in today’s article.
general information
Every car needs repairs sooner or later. The older the car gets, the more investment it requires. And since the number of vehicles on our roads increases from year to year, the need for components is growing. A business selling auto parts, if properly organized, will become a stable source of income.
In addition to spare parts, the company can supply and sell consumables. These include oils, filters, car accessories and more. When creating your own business, you need to focus on the focus of the region where you plan to open a company.
It is possible that spare parts will be in great demand not only for passenger cars, but also for trucks, buses or agricultural machinery. Concluding a contract for the supply of goods to any auto company will be of great help. In this case, the percentage of probability of a successful outcome of the case increases many times over.
Market and competitors
Currently, the auto parts market is quite extensive. Before you think about starting a business, analyze it and study your competitors. You may be able to find auto parts business ideas that have not yet become widespread and become the first in this field. There are several ways to carry out the analysis.
The first, and it is considered the simplest and least expensive, is employment in a specialized store selling auto parts. In a short time you will be able to thoroughly study the running positions and understand the features characteristic of this issue.
If you have no desire to work for hire, you can analyze cars in the region. Find out their age, model, ask about problems in auto repair shops. The last method that you can resort to before opening a business selling auto parts is to order an analysis from professionals. In this case, you will receive detailed and detailed information about how the situation developed at a certain moment.
Project
Having studied the data received, you must draw up a business plan, which you will rely on not only in organizational matters, but also when planning financial investments. In addition, the project will allow raising additional funds if necessary.
Agreements with suppliers
When thinking about how to organize the sale of auto parts, you need to decide on the assortment. At the initial stage, preference should be given to the most popular positions. Once a list of products has been identified, it is necessary to find suppliers and conclude contracts with them.
Some entrepreneurs, taking their first steps in this business, purchase goods at wholesale markets or in stores. A good option would be the opportunity to buy auto parts for sale. It is possible to ensure full-fledged operation of the company without shortages of goods (especially in the off-season) if you find and enter into written agreements with several suppliers at once.
Don't lose sight of your competitors. Conduct price monitoring. Look for better deals from suppliers. By doing this, you can reduce the cost of goods in your store and make it attractive to customers. To develop your business, you will also need to monitor trends in the regional car market. Don't ignore the release of new models and modifications of cars.
Start-up capital
To start a business selling auto parts, you need about 30 thousand dollars. With an average turnover of 10 thousand dollars per month and a trade margin of about 20-25%, its profitability will be 20-25%. If you follow all the subtleties and features of the auto business, the store will be able to fully pay for itself in 9-12 months. This figure is considered quite high.
Legal aspects
When choosing auto parts as a business, you should carry out the registration procedure for an individual entrepreneur (IP) or a limited liability company (LLC). This can be done by submitting an application in the appropriate form to the local tax authority. You will receive a certificate of registration, assignment of a TIN, registration with the Internal Revenue Service, and receive Goskomstat codes.
In addition, you must register the company with the medical, pension and social insurance funds. The final point will be choosing a taxation system, opening a current account and making a stamp. For beginning businessmen, given the low turnover, it is best to give preference to individual entrepreneurship. This way you can save on taxes and reduce the amount of paper documentation.
Location
In parallel with the development of the project and registration with the tax service, it is necessary to resolve the issue of the location of the store. This largely determines the success with which your business will develop. The sale of auto parts will bring greater profit if the outlet is located near service stations, garages, and highways. This should be done taking into account the foot traffic: the higher it is, the more customers will notice your store.
The premises can be rented, or you can build from scratch. The first method is easier for novice entrepreneurs, since the construction of a building will require considerable investment. In addition, it is worth creating a website. With its help, you can sell the most popular items, order spare parts and consumables via the Internet.
Arrangement of premises, organizational issues
When opening your own business selling auto parts, you need to come up with a sonorous name for the store. It should reflect the essence of your company and be easy to remember. Take care to make a bright and easy-to-read sign. The interior and exterior of the store should encourage customers to visit it. Install high-quality lighting so that the product is clearly visible. An important point is the availability of a parking lot or convenient access to the outlet.
It is best to adjust the store’s operating hours so that the client has the opportunity to purchase goods at the end of the working day and on the weekend. This time is convenient for those who repair the car themselves.
If possible, make the store open 24 hours a day. This is especially true in those cities that pass by federal highways. Drivers who break down on the road will certainly look for a store that is open 24 hours a day. This will bring additional profit to your company.
Equipment
As such, equipment is not required for a company that sells auto parts. Like any retail outlet, the store must be equipped with racks, display cases, racks and shelves on which goods can be conveniently and freely placed. Today, Internet access is important for such businesses. With its help, you can easily and quickly identify and select spare parts by VIN code. This opportunity is especially relevant for owners of foreign cars.
Staff
Having experience in selling auto parts and good knowledge in this industry, you can start working in a store on your own at first. Under favorable circumstances, the business will begin to develop and grow, and the need for additional personnel will appear. In this case, it makes sense to involve sales consultants with experience in the automotive industry.
Without the ability to do accounting yourself, you need to hire a permanent or visiting accountant. An additional advantage will be the service of an independent technician who will be able to assess the car’s breakdown and answer the car enthusiast’s question about what spare parts will fit his car. His responsibilities may include small minor repairs, which are carried out right on site.
Finally
After going through all the organizational stages, you will receive a ready-made business. Auto parts will be in demand until cars stop breaking down. But modern technologies have not yet been able to achieve this. Focus on the quality of the products sold, monitor the company’s pricing policy - and success will definitely accompany your business.
Transport has always been in demand, so even in a crisis, cars are in demand among buyers. Starting your own business in the automotive sector does not have to be by opening a car dealership. This is a more costly option for future profits. My immediate desire is that I want to operate from a lower segment of the automotive market. How to open an auto parts store? You need to follow the instructions, and with a clear strategy you can stabilize your income in the near future.
We formalize the activity
There are several options for registering a business. If we consider an auto parts store from scratch, then a less expensive and troublesome format is an individual entrepreneur. A beginner will need to collect the necessary list of documents:
- Submitting an application for registration of individual entrepreneurs.
- Entrepreneurs passport and TIN.
- Certificate of payment of state duty.
- Obtaining permission from the SES and fire service.
Legal registration of a business will prevent risks for the entrepreneur.
Deciding on the store format
After legalizing the business, you should decide on the specialization of the outlet. Huge selection of options:
- Specialized store (sale of spare parts only from a specific manufacturer).
- A universal direction - the retail outlet specializes in goods for all brands of cars.
- Large salon, including service station services.
Where to begin? An analysis of competition, product prices, and demand for products in the city where the individual entrepreneur opened will help you make your choice.
Important: a retail outlet with a narrow focus (“Gazelle” or “Volga”) should work only with an established customer base.
Room and location
The success factor largely depends on the location and premises of the outlet. Criterias of choice:
- Start a business in a sector with high foot traffic.
- Narrowing the circle of competition.
- Availability of car parking.
The size of the premises for an auto parts store should not be less than 50 square meters. m., the area for the warehouse area is also taken into account here. Renting a retail outlet minimizes the entrepreneur's costs; starting a business from scratch does not involve purchasing premises due to low capital.
Important: If something is missing in the room, you should contact the designers.
Suppliers
A popular collaboration in the car market is one or two buyers of goods. Preference is given to official representatives who supply only high-quality parts for cars. You should start your search with the intermediaries of these companies. Main selection factors:
- Reputation of the dealer company.
- Product quality.
- Reviews from other clients.
- Experience in the auto parts market.
- Profitable price.
- Long-term cooperation.
- Possibility of returning defective parts.
You should pay attention to the narrow supply profile. This will provide worthy competition to other stores (selling rare oil for cars or unique accessories).
Tip: additional product in the store adds profit, thanks to a significant markup on parts. To correctly distribute the cost of spare parts, you need to analyze the prices of competitors. Where to start, it’s better to study the current catalogs of other stores.
Equipment purchase
Your own business requires taking into account all the nuances, so you will need equipment for your retail outlet. Rental of indoor kits is possible from representatives who supply the goods. Scroll:
- Showcase.
- Shelving.
- Cabinets.
- Racks.
- Cash machine.
- Computer and printer.
Equipment is placed according to the area of the room. The store must be accessible to the customer, so everything is distributed with comfort in mind.
Important: the equipment must correspond to the size of the room; without this requirement, the work of the store will become inconvenient.
Staff
How to open an auto parts store without employees? At the first stage, such a step is simply impossible. Being an accountant and salesperson on your own is expensive, so you need to select several consultants. Here, a separate approach to personnel selection is required:
- The future employee must have a good understanding of cars.
- Have some experience working with spare parts.
- Friendliness.
- The presence of tolerance.
- Persuasiveness.
These qualities will help you avoid conflict situations with clients. An entrepreneur must be 100% confident in his employees; it is better to hire personnel with a probationary period. Setting up an auto parts store from scratch will not work without an accountant and a security guard.
Important: any retail outlet requires coordinated work, therefore a personnel control system is being introduced (installation of surveillance cameras and monetary motivation of employees).
We form an assortment
High profitability and low segment of entering a business from scratch, the auto parts market includes a lot of competition. An entrepreneur must choose a specialization that will always be in demand. It may be a small assortment of car parts, but this strategy will allow you to stay afloat for a long time. List of goods that will be sold in any market conditions:
- Lights, bumpers, engines.
- Side doors and mirrors.
- Signal accessories.
- Pendants.
- Racks.
The assortment for a retail outlet necessarily includes several areas:
- Spare parts for trucks of Russian and foreign manufacture (wear and tear due to commercial work).
- Cars from Japanese manufacturers (right-hand drive). These rare parts are purchased from suppliers in a minimum quantity, and it is better to make the service “to order”.
- Parts for passenger cars (Russian cars are often repaired).
Advice: in addition to the main product, you need to introduce anti-freeze products, winter and summer tires, and special solvents
Marketing moves
Advertising plays a significant role in business from scratch; in order to move forward, a high-quality strategy should be developed. An auto parts retail outlet does not require colorful signs or unique logos. The best option is an attractive name and an interesting appeal for buyers. Attracting clients is impossible without additional tools:
- Distribution of booklets and leaflets.
- Posting on the Internet.
- Providing free consultations.
- Discounts for regular customers.
Normalization of income depends on sales; to establish balance in the store, you need to attract your circle of customers.
Working on the Internet
Everyone starting their own business immediately allocates a separate sector of income. In a situation with an auto parts store, opening an online store is the right decision. This income will be an effective link in the operation of the overall system. And in order to study in more detail all the nuances of creating an online store, we recommend that you read the article. Parameters for starting activities:
- Website creation.
- Registration of individual entrepreneurs.
- Organization of an online catalogue.
- Convenient order form.
- Working with official representatives.
An online store selling auto parts is a popular niche and does not require large expenses.
Important: having resorted to creating a store online, you should choose the optimal payment system for customers.
Business financial plan
It is important to know that to open your own business, you need starting capital:
- Equipment rental – from 50,000 thousand rubles.
- Cosmetic renovation of the premises - from 60,000 thousand rubles.
- Initial purchase of goods – from 1,500,000 million rubles.
- Advertising – from 45,000 thousand rubles.
Initial costs for opening an auto parts store – from 1,800,000 million rubles.
The monthly amount in favor of operating activities includes:
- Staff salary – from 50,000 thousand rubles.
- Rent of space – from 50,000 thousand rubles.
- Utility payments – from 15,000 thousand rubles.
- Payment of taxes - from 10,000 thousand rubles.
Costs every month - from 125,000 thousand rubles.
The project's payback includes: markup - 25% on expensive goods, 100% on car accessories. The approximate profit for a store in a busy place is 180,000 thousand rubles. You can recoup the costs of your business after 12 months.
It is from this example that you will learn what costs are necessary at the initial stage and in the further existence of the store, what is the range of products sold that you are going to sell, the number of employees, a suitable taxation system, future income and the time frame within which this project must recoup costs and begin to generate profit. We present to you a concise but very informative business plan for an auto parts store completely free of charge. Taking it as a basis, you can easily create your own, in which you present all the actions consistently and clearly outlined, which will help you learn how to open an auto parts store for foreign cars and/or domestic cars.
Business plan for an auto parts store
We present you a free ready-made example of an auto parts store to help you open one.
Purpose of discovery
Nowadays, almost every family has a car and (or) a motorcycle, so supplying the necessary spare parts is simply necessary. In this case, our auto parts store is designed for the largest number of models represented (without specialization in spare parts or specific brands).
Brief summary
In order to open an auto parts store you need about $36,000, and in 1-1.5 years the money you invested will be returned to you. And the net profit will be from $5,000 to $8,000 per month.
Description
This business plan describes the creation of a trading enterprise based on minimal investments, the buyers of which are ordinary car enthusiasts who prefer to make repairs themselves without contacting a service station. In order to open such an auto parts store, you need premises, rented or owned, but not less than 50 square meters. The location of the store also plays an important role. It is advisable to locate an auto parts store close to a garage cooperative, a TSO, or a car wash, but you must not forget that it is located where there is a good transport interchange and parking.
Subject area
The auto parts market is a highly volatile area. It is influenced by many external and internal factors. The main task in managing an auto parts store is monitoring changes in the market, changing and diversifying the assortment offered. But it is imperative to take into account the quality of the product offered, and build a pricing policy based on it. All these steps allow us to stand with dignity in this very competitive market.
The target audience
As mentioned above, the target audience of the auto parts store is ordinary car enthusiasts. Although in the further development of trade there will be regular customers, for example, professional drivers, and it is also possible to conclude agreements with service station owners.
Competition
The competition in this industry of the auto parts market is quite severe, so everything needs to be carefully thought through, especially the marketing policy, not only for the first time, but also for the long term, so that you are doomed to success. As a competition, a novice entrepreneur must also not forget about the level of service; sellers must have professionalism in this area of service (even consultation on repairs or selection of spare parts is possible). You also need to take into account the opening hours of the auto parts store. Auto parts stores that are open late or around the clock are more popular.
In the future, develop the business into a whole network of auto parts stores, which will be united by one brand, and create their own website, where customers can view all the information they are interested in and find out which store stores this or that part.
Additional opening of an online store
This stage can greatly help in attracting additional buyers, and will also make it easier to find profitable suppliers for doing business. To do this, you need to create a high-quality website. Next, you need to create one unified database of auto parts and indicate prices for them, associate them with brands, models of cars, indicate the years of their production and, perhaps, even engine ranges. This information must be kept in order at all times so that it is relevant every day.
It may be easier to buy a ready-made database. If you decide to create it on your own, you will need to scan manufacturers' catalogs, recognize the text and translate it into the format required for the database.
Risks in the sales business include interruptions in the supply of spare parts, so one of the most important factors when creating a store is established relationships with suppliers. It is best to generally reduce intermediaries between the store and the parts manufacturer, as this will increase the profit of the auto parts store and also reduce the delivery time to the store.
Feasibility study of trade
Here are approximate figures for calculating costs, profits and economic activity of the store:
- we rent a room: approximately $1000 (it is better to pay for 6 months at once - $6000);
- complete renovation and decoration of the auto parts store for the opening - $2000;
- purchase of the necessary commercial equipment - $2000;
- furniture - $1000;
- purchase of spare parts - $8,000 per month (first purchase - $16,000);
- salary - $3000 (for 2 months - $6000);
- utilities and internet - $500;
- marketing expenses - $1000;
- outdoor advertising and store design - $2000.
The necessary equipment of an auto parts store is shelving, a cash register and a computer with programs installed on it and an Internet connection that make it easier for the client to find the spare parts he needs.
The staff of an auto parts store usually consists of: a director and one or more sales assistants who are good at operating a cash register.
The planned revenue in such stores is up to 75% of the funds spent.
Organizational and legal form
The simplest organizational and legal form of an auto parts store is the “Individual Entrepreneur” form.
The registration process takes place at the tax office and is quite simple, since:
- does not take much time;
- The package of required documents is minimal.
Store tax system
The activity of an auto parts store can exist under a preferential tax regime. A single tax on imputed income for certain types of activities (the main physical indicator is area).
Accounting
Maintaining accounting and tax records for an auto parts store is a simple task, therefore, in order to reduce the costs of this process, it is best to outsource it.
conclusions
This type of business can be brought to life both with the help of your own funds and with the help of an investor-borrower.
If you want to open a highly specialized auto parts store, that is, dedicated to a specific brand of car or, for example, only for foreign cars, then you can
Many people have their own car. Moreover, some families may have several vehicles at once, so various types of businesses that are directly related to cars are profitable and promising. This includes service stations, retail outlets selling automobile spare parts, car dealerships and other organizations. Entrepreneurs often think about how to open an auto parts store from scratch, which, if properly organized, promises to be very profitable.
Preparing for the opening
To run a business competently, an entrepreneur must have certain knowledge of the design of various machines, as well as the main types of their components. In this case, the auto parts business will be understandable and interesting for the businessman, and can become a source of significant profit.
Preliminary stages of work
Before directly opening the selected case, you should perform the following actions:
- Conduct a market analysis. Opening an auto parts store from scratch is not difficult, but it is important to know what competitors there are in a particular region, where these outlets are located, what is the demand for auto parts, etc.
- Decide on the specifics of the chosen business.
- Choose the organizational and legal form of activity, and also decide which taxation regime will be applied.
Trade in spare parts as a business will be successful if all of the above problems and issues are resolved.
Choosing store specifics
How to open an auto parts store that will be profitable and interesting for the entrepreneur himself? To do this, it is important to decide what type of activity will be chosen. It is simply impossible to open a retail outlet that will offer automotive spare parts for all types and brands of cars, so the following store format is chosen:
- sale of spare parts for certain brands of vehicles;
- sale of parts either for foreign cars or for domestic cars;
- sale of spare parts for special equipment or trucks;
- sale of used spare parts;
- trading using an online store.
Opening an auto parts store from scratch in any format is a rather complicated process. In addition, do not forget about numerous competitors. That is why an entrepreneur must choose the option that will be interesting to him.
Choosing a place to trade
It is important to decide where exactly the retail outlet will be located. It is best to choose a separate room, which can be located either in the city center or in a residential area. The premises must have sufficient area to accommodate not only a fairly large retail space, but also a good storage area.
The requirements for the premises will be as follows:
- the area should not be less than 100 square meters. m.;
- all necessary utilities must be connected to the premises, which include sewerage, water supply, heating and electricity;
- there should be no competitors in the immediate vicinity of the retail outlet;
- there should be convenient car parking next to the building where the store will be located;
- the store should be divided into several separate rooms, each of which will have its own purpose (there should be a sales area and a warehouse, as well as a utility room for employees).
Purchase of commercial equipment
To open an auto parts store and start working, you need to install the entire set of necessary equipment in the sales area. This includes:
- showcases and racks;
- shelves and drawers in which you can store small auto parts;
- tables and chairs for workers;
- high-quality office equipment;
- cash machine.
Note! Additionally, in the process of work you will have to purchase a lot of other equipment and elements that simplify the process of doing business.
Formation of assortment depending on the shape of the store
The assortment is completely selected depending on the chosen specifics of the work.
If we talk about how to open a store of auto parts for foreign cars to order, then it is enough to choose a small room in which one manager will work. He will have catalogs that potential buyers will study. After which an application will be filled out and the selected spare part of the foreign car will be supplied. Stores that sell spare parts for domestic cars on order operate in the same way.
Another format will be a store offering a wide range of auto parts and spare parts. How to open a spare parts store in this case? Here it is necessary to carefully consider the assortment, since each customer must find the right item in the store.
Selection of suppliers
Auto parts must be purchased from trusted and reliable suppliers. Therefore, each company with which cooperation is planned must be checked. It should not have any debts or negative reviews, and the organization should not be included in the list of debtors or insolvent companies.
The best solution is to work with official dealers of various brands of auto parts. In this case, you can be sure that all products are of high quality, and if a defect is detected, you can return the product to the supplier.
When concluding a contract, it is important to consider the following terms of cooperation:
- the possibility of obtaining a deferred payment;
- payment must be provided both by bank transfer and in cash;
- the document must provide for the return of defective goods.
You can open a spare parts store even by collaborating with suppliers located at a considerable distance from the store. In this case, all spare parts for cars can be sent by a transport company.
Recruitment
Opening a spare parts store from scratch is actually not difficult. However, for optimal operation of a retail outlet, it is necessary to pay enough attention to personnel selection. It is believed that qualified sellers who are able to advise the buyer are half the success of the business.
Personnel must have the following qualities:
- professionalism, since sellers must inform potential buyers about all the products in the store, and at the same time must interest and captivate them;
- experience that ensures the effective work of each employee who knows how to behave correctly in a given situation;
- communication skills, which ensures the establishment of communication between the store and customers, since silent and gloomy managers do not evoke positive emotions among customers.
Advertising and store promotion
Since the outlet will initially be unknown, it is necessary to conduct a high-quality advertising campaign.
Effective methods for promoting an auto parts store include:
- create your own official website;
- create groups on social networks;
- hand out leaflets on the street;
- Post advertisements on billboards near the entrances of houses nearby the store;
- advertise the store on radio or local television.
Counting expenses and income
The business of selling auto parts is quite profitable if you know where to start and how to develop the activity. However, to open it you will have to initially spend quite a lot of money. While working, you will also have to deal with constant high expenses.
Table. Initial costs (average)
Table. Monthly costs (average)
The markup on automobile spare parts can vary from 20 to 100%. The average revenue of a promoted store is approximately 900 thousand rubles, so the net profit can be equal to 200 thousand rubles. Accordingly, the initial investment pays off within a year.
Summary
Thus, if you have a well-developed business plan in your hands, you can form a profitable and promising business that will be a source of constant income.
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