Interested in small tire retail business ideas? If YES, here is how to open a tire shop with no money and no experience. How much does it cost to start up?
How to Start a Tire Retail Shop Business
Okay, so you’ve decided on starting a retail tire store business. There are a few jobs a person can venture into without having a high level degree or previous business experience, a simple retail tire store business is one of these businesses.
However, you will most definitely be required to draft a business plan for starting a retail tire store business as there’s no business too small or less technical for a business plan.
Before planning your retail tire store business, adequate understanding of various types of tires is important as tires come in different grades, sizes and shapes for distinct types of vehicles. Basically, we have commercial vehicle tire types and normal car tire types.
Compiled below are the requirements for starting a retail tire store business.
Legal Consent Essential in Starting a Retail tire store business
When starting a retail tire store business you will need to choose the ownership method of the business. You might decide on a single person operating system (sole proprietorship), forming a partnership, a corporation or a Limited Liability Company.
After making this decision, choose a noteworthy unique name for your retail tire store business and obtain Trade license and Sales tax registration. It is also important you get an accredited distributorship of your desired tire producing brand.
Proper Business Location
Tires are relatively large and require vast space for proper showcase of products you will need a reasonable amount of space inside to store tires. When starting a retail tire store business, purchase a location that is closer to the highway and maybe a petrol station for customers to easily assess the shop and purchase tires or get previous tires changed.
Purchase a proper tire shop space. Do not purchase the space with the lowest cost but a space you can actually work with.
Source of Start-up Capital
Starting a retail tire store business might be a bit expensive to finance using individual savings, create a budget pinpointing all the financial necessities of the business and ways to finance them. If your business is a partnership, other partners would fund the shop in exchange for a percentage of the business shares.
Retail tire store business Plan
The business plan of a retail tire store business shows the nature of the business, goals, threats, strength, weaknesses and opportunities. It should contain visions and proposed future outcome of your business.
In starting a retail tire store business, your business plan should contain an executive summary which is a brief overview of the entire company, business description, market and competitor’s strategy, management and operational details and business financial information.
A business plan puts forward the goals and targets of the company and how to achieve them.
When starting a retail tire store business, a budget is necessary as most successful retail shops are properly budgeted for. Your financial budget should contain a list of expenses necessary in starting a retail tire store business which include; business registration cost, fees for the services of a business advisor, employee’s income for at least two years, insurance license, purchase or lease of tire store location and cost of purchasing tires.
These expenses alongside their estimated prices should be accounted for in the financial budget when starting a retail tire store business.
Equipment Needed in Starting a Retail tire store business
Tires of different types are the most obvious equipment required when starting a retail tire store business. Other tools are also needed for installation.
Tools such as; rims, valves, balancers, centering devices, impact wrenches etc. Purchase quality equipment from a reliable supplier.
Advertising and Marketing Strategy
Tires are mostly needed by owners of automobile. Create banners to inform the public on your business launch.
If you have decided to also sell tires online, get a professional web designer and create your own website.
- Describe your target customers you may have decided to sell tires to residential car owners or commercial car owners. How do you intend on making tires readily available for customers needs?
- Carry out an inquiry on other retail tire store business owners, regarding their prices and products and services you can off that they don’t. You can offer home tire services or deliveries.
- Offering discounts on tires and accessories during your retail tire store business launch can help to attract customers to the business.
Building your Team
List out the duties and functions of employers you intend to work with keeping in mind the skills and manpower necessary in starting a retail tire store business. Also employ the services of an accountant who would document and control the sales forecast of your retail tire store business.
As much as cars are in circulation, tires are required. A tire shop is an easy to start profitable business, do your research properly and write a foolproof business plan.