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The Ultimate Guide to Starting a Tire Shop!
Talking about Tire Shop, the business is included in the list of very important and prominent businesses in the automobile sector. Although the category of tires in general running in the world can be broadly divided into six categories on the basis of vehicles. Including car wheels, bus wheels, motorbike wheels, auto wheels, truck wheels, and so on. The tire shop business is one of the major businesses in the automobile sector.
These days the number of vehicles is increasing continuously in the world, due to which the tire business is also growing a lot. Since at present the number of vehicles on the roads is continuously increasing and no vehicle can be imagined without tyres. Therefore, if you are thinking of starting a retail business in the automobile sector, then the business of a Tire Shop can be suitable. Here in this article, we are going to give you information about how to start a tire shop business.
Market Research for Business
The first step that needs to be taken towards starting a Tire Shop Business is the work of market research, under this process the entrepreneur has to take stock of the demand of the local population in the area where he wishes to conduct business. It must also be determined who and what types of vehicles are primarily used by the locals.
Public transport also has to be assessed that what type of vehicles are mostly in use in that area. It is mainly seen that tire Shops generally do more business in towns and cities. Aside from that, if this shop is located on a busy highway, this will have an impact on this type of business. Therefore, first of all, the entrepreneur needs to assess the local demand, competition, most vehicle types and location through market research.
Product Selection for Tire Shop
Which inventory the entrepreneur will keep in the tire Shop will depend on which vehicles are mostly with the people in that particular area and which vehicles move more in that particular area. And also, it will depend on whether the vehicles operating in that particular location are new or old.
In general, new vehicles do not require the replacement of tires. If the entrepreneur wants, he can sell the tires used in all types of vehicles like a two-wheeler, three-wheeler, and four-wheelers. And also, If the entrepreneur wants, he can sell not only tires but also rims and tire tubes in his tire shop.
Investment for Tire Business
How much you will have to invest in this business depends on the type of business you start; if you start a tyre business of any kind. you will have to spend a lot of investment at 5 to 7 lakh rupees in it, whereas if you take a franchisee of a company, then it will cost 2 to 3 lakh rupees.
The Investment in this business is related to the expenses incurred by you to take the tire shop business and after that, If you own your own land, you can do more work for less money than if you rent your land. But if you take it or buy it, then more investment has to be done in it and along with it, it is equally important to choose the right place.
Place Selection for Tire Shop
To begin a tyre shop business, you will need a location where you can store all types of company tyres and conduct business. You can also keep the tyres from the company from which you obtained your franchise. This location could take the form of a store. You will need a shop of at least 500 to 1000 square feet for this.
You should start this shop in an area where vehicles are driven frequently, such as on the highway. And The entrepreneur should choose a location that is located on a busy highway road, apart from being easily visible from the road. So, here you can increase the chances of getting more profit.
License and registration for Business
Although do not register this type of retail business with the Registrar of Companies, as per the local rules, do get a trade license from the local authority.
A trade license is most important for business, without this, your business will not be considered legally valid.
GST registration is necessary to start any business. So you have to do this in this business as well.
If you are opening a shop in the automobile area of your business, then it is also necessary for you to be registered under the Shop and Establishment Act.
The entrepreneur also needs to register a domain in the name of the business so that he can do online marketing by creating an online presence for his business.
Buy Equipment & Inventory for Tire Shop
If we talk about the major inventory required for Tire Shop Business, then the entrepreneur needs to buy different tires based on different sizes, sizes and types of vehicles. That is, the entrepreneur must consider buying various types of tyres based on local consumer demand. Apart from this the entrepreneur also needs to buy rims, valves, tubes and so on.
Apart from this, there may be a need to buy some more necessary equipment like tire balancing, centring device, tire changer, tire pressure, address management system, impact wrench and more. Before deciding to buy these, the entrepreneur should obtain quotations from at least three suppliers in the area, compare them, and then select a good supplier and order the required material.
Hire Employees for Tire Shop Business
For Tire Shop Business, the entrepreneur needs skilled and hardworking employees who have the ability to solve all the tire-related problems of the vehicles. However, You will not need many people in this business, you can hire 1 or 2 people in beginning.
Moreover, in order to do so, that person must have extensive experience in this field. As a result, when hiring employees, the entrepreneur must keep in mind that they must have at least some work experience.
Also, If the entrepreneur wants, which automobile engineer can also be appointed as his employee, although the appointment of an engineer may be costly for the entrepreneur. However, if the entrepreneur’s customers are satisfied, the automobile engineer can also play an important role in increasing his customers.
Marketing For Tire Shop Business
Marketing for this tire business is very important because, without it, it will not be easy to run your business. You have to put up posters and banners for advertising your business so that more people can get information about your business. You will also need to offer a small discount to your customers at first in order to attract more customers.
According to the demand of the customers, you should keep all types of items in your shop, such as keep all types of vehicles and bikes tires and their related things in your shop. And, Register your products on the famous e-commerce website as currently, online shopping people do more.