used tire shop business plan

How to Start a Used Tire Business

Used tire businesses sell and install tires that have been previously driven on. Some businesses also offer tire repair services, but the sale of tires accounts for the majority of a business’ revenue.

The used tire industry is strong and growing. According to the Rubber Manufacturers Association (RMA), between 30 and 35 million used tires are sold annually. About 10 percent of drivers have these tires on at least one vehicle.

Learn how to start your own Used Tire Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a used tire business by following these 10 steps:

• Plan your Used Tire Business
• Form your Used Tire Business into a Legal Entity
• Register your Used Tire Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Used Tire Business
• Get the Necessary Permits & Licenses for your Used Tire Business
• Get Used Tire Business Insurance
• Define your Used Tire Business Brand
• Create your Used Tire Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your used tire business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Used Tire Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your used tire business?

Business name generator, what are the costs involved in opening a used tire business.

The startup costs for a used tire business go to three primary areas. Business owners need:

• A retail location
• Equipment for installing tires

A good location will have a storage space for inventory, a small retail area and a garage for working on cars. It’ll also be in a low-rent district so that overhead can be kept minimal. Good locations include old auto shops and warehouses that are no longer in use.

Business owners that want to reduce equipment costs can look for used equipment that’s in good condition. Purchasing used, high-quality equipment is preferable to getting new, lower-quality tools because high-quality equipment is often more efficient to use. It’ll save time and reduce labor costs associated with installing purchased tires.

When purchasing tires, business owners should get a large, varied selection. The inventory gathered should include many sizes of car, truck, low-profile and high-performance tires. Good places to purchase tires include junkyards, tire shops and retreading centers.

It’s also a good idea to forge a relationship with a wholesale supplier of rims, but rims can be purchased on an as-needed basis.

In total, these expenses may range from a few thousand dollars to tens of thousands. The range depends on how much a space costs, what type of equipment is purchased and how large an inventory a business opens with.

What are the ongoing expenses for a used tire business?

The ongoing expenses for a used tire business are manageable. They include lease payments, utilities, employees’ salaries and inventory expenses.

Who is the target market?

The target market of a used tire business is anyone who owns a vehicle and wants to save money. All vehicles need tires, and many drivers are willing to consider used tires because they provide an excellent value.

How does a used tire business make money?

A used tire business makes money by selling used tires to customers. Most tires are sold individually, in pairs of two or in sets of four. Tire Business reports that the average sale at one business, Drakes Tire’s, is a pair. Sales at another business, Rob’s Used Tires, are evenly split between individuals, pairs and sets.

Used tires cost much less than new ones. Gently used tires sell for up to half their initial cost, while more worn tires sell for much less.

Despite these low prices, businesses can still earn a handsome profit. Used tires can be purchased wholesale for very little because other businesses must pay a fee to dispose of old tires if they don’t sell them to a used tire business.

For each tire sold, many businesses charge an additional $15 to $45 to mount and balance the tire.

How much profit can a used tire business make?

Because there is such demand for tires, a used tire business can bring a significant profit. For instance, S & S Distributors, LLC moves 10,000 tires each week. Even at a fraction of the cost of new tires, that amounts to a sizable weekly revenue.

How can you make your business more profitable?

A used tire business can increase its profitability by also selling rims and new tires, and by offering tire repair service. Some businesses may get into more significant automotive repairs.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your used tire business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

All businesses involved in automotive vehicle maintenance must comply with federal and state-level environmental regulations. A checklist for compliance with federal environmental regulations can be found  here .

In most states, it is necessary to obtain an appropriate business license. Learn more about licensing requirements in your state by visiting  SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A used tires shop business is generally run out of a “garage,” a retail location uniquely equipped to store and repair cars. Businesses operating out of a physical location typically require a  Certificate of Occupancy  (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an Car Repair business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,  it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your used tires business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Used Tire Business needs and how much it will cost you by reading our guide Business Insurance for Used Tire Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a used tire business

A used tire business is best marketed through inexpensive marketing tactics that don’t increase how much a business must charge. Radio and online ads work well, as do Craigslist postings.

How to keep customers coming back

One of the challenges of getting customers is convincing drivers that used tires are a safe alternative to new ones. Businesses can do this by telling customers about their pre-sale tire inspections and offering a warranty. Rob’s Used Tires offers two-, four- and eight-week warranties based on tire grade.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

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Is this Business Right For You?

Anyone who likes working on vehicles and enjoys working with their hands might be well-suited for running a used tire business. Having basic people skills is also helpful, as business owners must be able to sell tires to customers.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a used tire business?

A typical day at a used tire business consists of:

• Picking up used tires from nearby locations
• Inspecting used tires for condition and quality
• Selling used tires to customers
• Installing used tires that customers purchase

Installing tires involves removing tires that are currently on a vehicle, and mounting and balancing the used tires that are purchased.

What are some skills and experiences that will help you build a successful used tire business?

In order to successfully run a used tire business, it’s necessary to know how to inspect used tires and how to install them. Business owners can get an initial education by working at a tire center (either used or new), and they can further their knowledge through courses offered by the Tire Industry Association. Some courses that business owners might want to take include:

• Basic Automotive Tire Service (ATS)
• Certified Automotive Tire Service (ATS)
• Advanced Tire Pressure Monitoring Systems (TPMS)

These courses cover topics like dismounting, mounting, installing, removing and repairing tires.

More advanced courses on commercial tires are also available. When starting out, however, business owners should focus on the basic courses that focus on tires for personal vehicles. This is where most of the market demand is.

What is the growth potential for a used tire business?

Some used tire businesses focus on online sales in order to reach buyers across the country. Most, however, have one or two locations that serve a defined geographic area. Hooper’s Tire Outlet is a business that has two locations serving Upstate New York. BestUsedTires.com is an example of an online-based business.

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Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a used tire business?

When opening a used tire business, it’s important to only sell safe, good-quality tires. All tires should be inspected, and they should have a decent amount of life left. Just one bad tire that fails could cause an accident and devastate a business.

Some ways to test tires’ conditions include:

• Performing air tests to check for leaks
• Visually inspecting tires for defects or previous repairs
• Inspecting tread depth and overall wear

How and when to build a team

Used tires businesses usually have a small team of employees from the outset. The number of employees can be kept minimal, but at least a couple people are needed so that someone can talk with customers while another employee is installing tires.

Useful Links

Industry opportunities.

• Tuffy Franchising Opportunity

Real World Examples

• Discount Tire Store
• Town Used Tire

Further Reading

• How to Open a Used-Tire Shop

Have a Question? Leave a Comment!

We earn commissions if you shop through the links below.  Read more

Used Tire Business

Back to All Business Ideas

How to Start a Used Tire Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Updated on May 16, 2023

Investment range

$51,550 - $104,100

Revenue potential

$234,000 - $936,000 p.a.

Time to build

1 – 3 months

Profit potential

$70,000 - $280,000 p.a.

Industry trend

• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Start Making Money!

Used Tire Business FAQs

Every vehicle needs tires, and new ones can be expensive. That’s why more and more people are opting to buy used, which cost half as much. You could source from junkyards and tire dealers, start your own used tire business and provide a much-needed product while making good money in a steadily growing $35 billion US industry. 

But before you jump into the junkyard to start digging for gold, you’ll need to know how to launch and market your business, and to learn some financial aspects of business as well. Luckily, this step-by-step guide has you covered with all the information you need to launch a successful used tire business. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a used tire business has pros and cons to consider before deciding if it’s right for you.

• Good Money – Acquire tires for cheap and mark them up
• Large Market – All vehicles need tires
• Provide Value – Many people can’t afford new tires
• High Startup Costs – Garage, equipment, and inventory can be expensive
• Crowded Market – Compete with many other used tire businesses

Used tire industry trends

Industry size and growth.

• Industry size and past growth – The US tire dealers industry is worth $35 billion after modest growth during the previous five years.(( https://www.ibisworld.com/united-states/market-research-reports/tire-dealers-industry/ )) 
• Growth forecast – The US tire dealers industry is projected to continue to grow for the next five years. 
• Number of businesses – In 2022, 31,895 tire dealers are operating in the US.
• Number of people employed – In 2022, the US tire dealers industry employs 170,753 people.

Trends and challenges

Trends in the used tire industry include:

• People are getting back out as the pandemic winds down, and putting more miles on their tires, which should boost the used tire industry.
• Inflation has people seeking to cut costs, which means more people are likely to opt for used tires instead of new ones.

Challenges in the used tire industry include:

• Used tires that fail quickly are a potential liability for used tire businesses.
• Labor shortages are making it difficult for used tire businesses to find workers.

Demand hotspots

• Most popular states –  The most popular states for tire technicians are Iowa, North Dakota, and Oklahoma.(( https://www.zippia.com/tire-technician-jobs/best-states/ ))
• Least popular states – The least popular states for tire technicians are Utah, Massachusetts, and Colorado.

What kind of people work in used tires?

• Gender –  3.5% of tire technicians are female, while 96.5% are male.(( https://www.zippia.com/tire-technician-jobs/demographics/ ))
• Average level of education – The average tire technician is high school educated.
• Average age -The average tire technician in the US is 35.7 years old.

How much does it cost to start a used tire business?

Startup costs for a used tire business range from $50,000 to $100,000 or more. Costs include a garage rental, equipment, inventory, and an operating budget. 

You can take online courses and become certified as a tire technician through the Tire Industry Association . Courses are self-study and cost about $1,000 in total.

You’ll need a handful of items to successfully launch your used tire business, including: 

• Floor jacks
• Air impact gun
• Screwdrivers
• Tire spreader
• Wheel balancer

How much can you earn from a used tire business?

The average cost of a used tire is about $90 and scrap tires will generally cost much less, especially if you’re able to partner with a junkyard. Your profit margin after rent and labor should be about 30%. 

In your first year or two, you could sell 50 tires a week bringing in $234,000 in annual revenue. This would mean $70,000 in profit, assuming that 30% margin. As your shop gains recognition, sales could climb to 200 tires a week. With annual revenue of $936,000, you’d make an outstanding profit of more than $280,000.

What barriers to entry are there?

There are a few barriers to entry for a used tire business. Your biggest challenges will be:

• Funding the startup costs of your tire inventory and operating budget
• Standing out and drawing business in a crowded market

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How to Start an Oil Change Business

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Step 2: hone your idea.

Now that you know what’s involved in starting a used tire business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research used tire businesses in your area to examine their products/services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a business that recycles old tires or shredded tires, or a used tire business that also offers automotive repair services.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as a certain tire brand, or used tires with more than the required tread depth.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

If you have the skills, in addition to selling and installing used tires, you could offer automotive repair. You could also sell new tires, tire rims, and other car products.

How much should you charge for used tires?

Prices for used tires are generally about 50% of their original cost. After all your costs, you should aim for a profit margin of about 30%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to TikTok, Instagram, Facebook, and even LinkedIn.

Where? Choose the location for your used tire shop

The location of your used tire business is crucial to its success. Consider setting up a shop in an industrial area with a high concentration of trucking companies and transportation businesses. This will increase your chances of receiving business from those who require heavy-duty tires for their fleets.

A location near a major highway or interstate is also ideal, as it will attract customers traveling long distances who may need tire replacements. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “tires” or “used tires”, boosts SEO
• Name should allow for expansion, for ex: “Second Life Tires” over “Commercial Used Tire Solutions”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary : Brief overview of the entire business plan; should be written after the plan is complete.
• Business Overview : Overview of the company, vision, mission, ownership, and corporate goals.
• Product and Services : Describe your offerings in detail.
• Market Analysis : Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis .
• Competitive Analysis : Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
• Sales and Marketing : Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
• Management Team : Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
• Operations Plan : Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
• Financial Plan : Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
• Appendix : Include any additional financial or business-related documents.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to used tire businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your used tire business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a used tire business. 

Step 8: Apply for Licenses/Permits

Starting a used tire business requires obtaining a number of licenses and permits from local, state, and federal governments.

Most states have tread depth requirements as well as condition requirements for used tires. Check with your state to make sure the tires you sell are in compliance.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your used tire business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Shopmonkey , ARI , or Mitchell1 , to manage your scheduling, inventory, workflows, and invoicing. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like  WordPress ,  Wix , or  Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products: 

• Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area. 
• Instagram: Same benefits as Facebook but with different target audiences.
• Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Schedule Now.” This can sharply increase purchases. 
• Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers. 

Kickstart Marketing

Take advantage of your website, social media presence, and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include: 

• Signage – Put up eye-catching signage at your shop and website. 
• Start a blog – Start a blog and post regularly. Change up your content and share it on multiple sites.
• Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
• Pay – per-click marketing – Use Google AdWords to perform better in searches. Research your keywords first.
• Make a podcast – This allows you to make a personal connection with your customers.
• Do a webinar – Share your used tire expertise online with a video seminar.
• Testimonials – Share customer testimonials about how your used tires helped them.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your used tire business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your used tire business could be:

• Reliable used tires for less
• Same-day used tire repair and installation
• We bring great used tires to you, fast 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a used tire business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in used tires for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in used tires. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a used tire business include:

• Tire Technicians – install used tires
• General Manager – scheduling, ordering accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Used tires are big business, with the industry worth $35 billion and expected to continue to grow in the next decade. By opening your own used tire business, you could make quite a good living. You can easily learn to be a tire technician, and with a bit of an investment, you could build a great company. It will take hard work, and a passion to serve your customers, but you can be very successful while providing a valuable service at the same time.

You’ve got the business part down now, so it’s time to get your lucrative used tire business up and running!

They may not sound like much, but there’s good money in used tires. You can buy as scrap and sell for a healthy markup. You just need to be dedicated to providing customers with real value and service, and you can be successful.

Generally, used tires sell for about 50% of their original price. Prices will, of course, depend on the condition of the tires. You should also check used tire prices in your area to make sure you’re competitive.

The types and sizes of used tires you should stock in your inventory depend on the local demand, customer preferences, and the types of vehicles commonly seen in your area. It’s important to carry a diverse range of tire sizes to cater to different vehicles, including passenger cars, SUVs, trucks, and commercial vehicles. Focus on popular tire brands and models that are known for their quality and reliability.

Create a professional website or online store that showcases your inventory and provides information on services and pricing. Utilize search engine optimization (SEO) techniques to improve online visibility. Leverage social media platforms to engage with potential customers, share useful tips, and run targeted advertising campaigns. Collaborate with local auto repair shops, car dealerships, or fleet management companies to establish referral partnerships. 

Starting a used tire business on the side is possible, but it requires careful planning, time management, and adherence to local regulations and licensing requirements. Research the market demand and competition in your area. Ensure you have adequate storage space for the inventory, a reliable supply chain for sourcing used tires, and a suitable infrastructure for managing customer inquiries, sales, and deliveries. Evaluate the time and resources you can dedicate to the business while considering the demands of your primary job.

Check the tread depth using a tire tread depth gauge to determine if the tires have sufficient remaining tread life. Inspect the tire sidewalls for any cracks, bulges, or signs of damage. Look for signs of uneven wear or irregular tire wear patterns, which may indicate alignment or suspension issues. Verify the manufacturing date to ensure the tires are not too old or expired. Check for any repairs or patches and assess their quality. 

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Tire Shop Business Plan Template

Written by Dave Lavinsky

Tire Shop Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their tire shops.

If you’re unfamiliar with creating a tire shop business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a tire shop business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your tire shop as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan

If you’re looking to start a tire shop or grow your existing tire shop, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your tire shop to improve your chances of success. Your tire shop business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Tire Shops

With regards to funding, the main sources of funding for tire shops are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for tire shops.

How to Write a Business Plan for a Tire Shop

If you want to start a tire shop or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your tire shop business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of tire shop you are running and the status. For example, are you a startup, do you have a tire shop that you would like to grow, or are you operating a chain of tire shops?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the tire shop industry.
• Discuss the type of tire shop you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of tire shop you are operating.

For example, you might specialize in one of the following types of tire shops:

• Retail : this type of tire shop offers tires in all price ranges, new and used, affordable, and luxury. They mainly offer the most popular brand names of tires.
• Discount: this type of tire shop focuses on selling discount tires that are affordable to their client base. They will also carry used and gently worn tires that can be sold at a discounted price.
• Full-service: this type of tire shop will sell tires, but also perform tire rotations, oil changes, and other small mechanical jobs.

In addition to explaining the type of tire shop you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of customers with positive reviews, reaching X number of customers served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the tire shop industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the tire shop industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your tire shop business plan:

• How big is the tire shop industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your tire shop? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your tire shop business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, and businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of tire shop you operate. Clearly, individuals would respond to different marketing promotions than businesses, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Tire Shop Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other tire shops.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes car dealerships, large big box retailers, or auto shops. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of tire shop are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide other mechanical services aside from tire replacement?
• Will you offer products that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a tire shop business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of tire shop company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide oil changes, complimentary tire rotations,tire leak or damage repair, or auto inspections?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your tire shop. Document where your company is situated and mention how the site will impact your success. For example, is your tire shop located in a busy retail district, a busy neighborhood, a standalone location, or adjacent to an auto mechanic shop? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your tire shop marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your tire shop, including taking tire inventory, customer service and billing, scheduling staff hours and payroll, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth tire, or when you hope to reach $X in revenue. It could also be when you expect to expand your tire shop to a new city.  

Management Team

To demonstrate your tire shop’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing tire shops. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a tire shop or successfully running an automotive repair shop.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 5 tires per day, and/or offer multiple tire purchase discounts? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your tire shop, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a tire shop:

• Cost of equipment and tire inventory
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your tire shop location lease or a list of tires you plan to offer.  

Writing a business plan for your tire shop is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the tire shop industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful tire shop.  

Tire Shop Business Plan Template FAQs

What is the easiest way to complete my tire shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your tire shop business plan.

How Do You Start a Tire Shop Business?

Starting a tire shop business is easy with these 14 steps:

• Choose the Name for Your Tire Shop Business
• Create Your Tire Shop Business Plan
• Choose the Legal Structure for Your Tire Shop Business
• Secure Startup Funding for Tire Shop Business (If Needed)
• Secure a Location for Your Business
• Register Your Tire Shop Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Tire Shop Business
• Buy or Lease the Right Tire Shop Business Equipment
• Develop Your Tire Shop Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Tire Shop Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Tire Shop business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to hire someone to write a business plan for you from Growthink’s team.  

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How to Start a Used Tire Business | Expert Guide to Start Now

A used tire business offers a lot of opportunities for success. Used tires are everywhere, and each of them provides a new chance to make money. Used tires are also easy to ship and sell, making them an accessible business to run from an online platform. With all these benefits, it’s no surprise that a used tire business is one of the most popular businesses to start in the United States. 

This blog will discuss creating an operated tire business from scratch, and your reasons may range from not needing to start a business to preferring to utilize used tires.

How to Start a Used Tire Business

The Business Model of the Used Tire Shop:

There are a few things you need to know about the business model of a used tire retail shop, which I will write here. First, you must know that this business deals with large products, so you must buy as many products as possible to gain the most significant profit return. 

Furthermore, you will have to have employees who do screen carefully to meet the high standards of the store. Through careful research, you can find the right companies to buy your products from, which will help you increase overall profits while also spreading the word about your business.

Finding Sources of Used Tires for Business:

Finding sources of used tires for business is not unlike finding sources of used tires for personal use. You can also use the internet for a broader range of options. Tire dealers buy tires at the level of business that replaces their tires. 

For this purpose, you can also do browsing online. Many websites offer used tires for sale. Check online reviews and ensure that you are dealing with a legitimate business before sending your money.

Process of Creating a Used Tire Business: 

Commence the process of opening your used tire business by carrying out market research and talking to prospective customers. Find out the demand for used tires in your community. Do this by carrying out a survey and making inquiries to people who are likely to be customers. 

Introduce yourself to the business community in your community by having a well-planned opening ceremony after the commencement of your business. Obtain the required legal permits and licenses. Finally, hire the required staff and stock your business with the needed equipment. 

The Necessary Equipment to Start A Used Tire Business

Used tire business is a good investment for those who want to start their own company with limited funds. It only requires the necessary equipment to start, such as a hydraulic jack, shovel, compressor, tire irons, brake machine, a wheel balancer, tire chains, and a tire patch kit.

It is vital to comprehend that numerous cars exist in multiple nations. Another thing you need is space to store your inventory. You can either rent or purchase property nearby an industrial area.

Beginners Guide to Starting A Used Tire Business

The vehicle has essential parts in the form of tires. They protect the car and the people inside it during high-speed accidents. The tires also reduce the friction between the vehicle and the ground.

If you like to create a tire company, you should preferably analyze the demand. Find out how the market’s doing, what your competitors are doing, and what kind of tire you should sell. 

Next, you will have to create a plan for your business, including what you will sell, how you will market it, pricing, and your target audience. Then, you should get a few tires from your local tire shop to use as examples. Please place them in an area where people can see them. While building your business, it’s essential to remain flexible with your plan.

Reasons Why You Should Start a Used Tire Business

• You need a large inventory or lots of employees.
• Limited competition: No one is advertising used tires.
• Works from home: you need a physical location.
• Full-time or part-time: You choose.
• Create a market for your business. Tires are everywhere.
• Increase your customer base. Tires use for almost every type of vehicle.
• Make money doing what you love. Collecting and sorting tires is fun.
• Sell the tires you have collected by giving people what they want – Cheap tires.
• Be your boss. You set your schedule.

The Legal Concerns for Starting a Used Tire Business

Although the legal concerns for starting a used tire business are not concrete, individuals could inevitably be responsible for any injury or death relating to the product. There are many variables related to potential liability for this business, including the quality of tires being offered for sale, what kind of license needs to sell the tires and the jurisdiction in which the used tire business operates.

Frequently Asked Questions

How good is a used tire shop.

• Very profitable. You can earn $8,000 profit per month to run the business.
• Profitable. It runs for about $300 per month.

How Do I Start A Tire Sale Business?

• It is not more challenging to start a tire sale business and attract the most customers.
• Start a tire sale business, have a better payment plan than competitors and sell to more customers.

Will The Price Of Tires Increase In The Coming Days?

Tires are a necessity for every motorist. One cause for the growth could be the rising petroleum costs. Other causes could be due to the increasing need and lack of tires.

What Is The Reason For Rising Tire Prices? 

• It’s simple supply and demand. 
• We all know how vital car tires are to cars, so the prices are rising. 
• The cost of raw materials like rubber and steel has gone up.

In conclusion, a used tire business can be an excellent long-term investment for an entrepreneur to consider. Tires are in increased need, and costs will resume rising over the forthcoming years.

The first step would be planning, including determining if you need your product or service where you want to set up shop. Next, you’ll need to get financing from someone who has been in the industry before and then calculate how much it costs to start a company like your own.

I am an Automotive specialist. I graduated from Michigan with Bachelor in Automotive Engineering and Management. Also, I hold degrees in Electrical and Automation Engineering (BEng), Automatic and Industrial Electronic Engineering, and Automotive Technology. I have worked at General Motors Company for over five years as the Marketing Operations Production Coordinator. Now, I own my garage in Miami, Florida. I love cars and love to share everything about them with my readers. I am the founder of the Automotiveex blog , where I share everything about automotive, like car news, car mechanical issues, and anything else that comes up in my blog posts.

Check my details

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How to Open a Used-Tire Shop

by Heather Skyler

Published on 2 Nov 2018

Everyone who drives will eventually need tires for their vehicle, and they can be quite expensive. Even the tires on a brand new car will eventually wear out. And many potential customers would rather go to an independent shop than a dealership or giant chain tire store. Consider filling this business niche with a used tire shop.

Starting a used tire company takes a lot of planning and several steps. As with any new business, you'll want to develop a business plan, find funding for your used tire shop and understand laws and safety regulations in your state.

Develop Your Business Plan

Every business should have a written business plan since it provides direction and attracts investors. A comprehensive business plan is the key to the success of your new used-tire shop. There are a lot of resources that can help you get started, and the Small Business Administration is the best place to begin.

Business plans should include:

• An executive summary. This is your business explained in a succinct paragraph or two.
• A company description. Here you can describe in greater detail what your company will do.
• A market analysis. Provide research on your industry, market and competitors in the used tire industry.
• The organization and management structure of your company.
• More detail on the services or products you'll be offering.
• Your plan to market your business and your sales strategy.
• The amount of money your used tire shop will need for the next three-to-five years.
• Financial projections for the next three-to-five years. 
• An appendix where you can include a bio, resumé and permits.

Secure Funding for Your Used Tire Company

SBA Loan: You might qualify for a business loan guaranteed by the SBA, which was created with the goal of helping more small businesses secure financing. However, the SBA doesn’t provide loans; instead, it guarantees them. If a loan is given an SBA guarantee, lenders know the SBA believes in the soundness of the business. However, if a business defaults on an SBA loan, the SBA is responsible for paying back a certain percentage of the loan. Many new companies don't take advantage of getting backed by the SBA because the process can be tedious and time-consuming, but it is definitely worth the extra work.

Crowdfunding: In recent years, business funding has gotten a boost from such crowdsourcing platforms as Indiegogo and GoFundMe, which allow individuals to raise funds through social networks. The donors can give as little or as much as they want. Typically, the business offers some type of share, bonus or reward in return for the donation.

Local government help: There are sometimes loans or grants available for new businesses that are located within certain districts, such as a downtown revitalization area. Funding is also available for certain types of businesses. The great thing about getting this type of funding is that loan rates are low, and some might even be grants with no repayment required.

Buy Your Inventory

Starting with a large, varied selection of tires is smart. Include many sizes of car, truck, low-profile and high-performance tires. You can purchase tires from wholesalers, junkyards, tire shops and retreading centers.

You may need to spend a couple of thousand dollars to tens of thousands. It will depend on how much a space costs, what type of equipment you buy and how large an inventory you plan to open with.

Test Your Tires

It is always important to sell safe, good-quality tires. To that end, you must inspect all the tires you buy. Just one bad tire could kill your business, especially if someone is injured due to a flawed tire that causes an accident.

Make sure that you perform air tests to check for leaks, visually inspect tires for defects or previous repairs and inspect tread depth and overall wear.

Liability Versus Profit of Used Tires

Starting a used tire business can be quite profitable, particularly because you can sometimes acquire tires at zero cost. However, used tires come with liability.

Although there are many used tire places open, and it is a perfectly legal business, the law says it is your responsibility that the tire is in a safe condition when sold. Even if you're unaware of a defect at the time of the sale, by accepting payment, there is an expectation that the tire will provide safe handling and performance. The liability falls on the manufacturer with a brand new tire, except if the defect is caused during storage or the installation. Make sure you know all the laws governing a used tire business in your state and understand the importance of safety.

Hiring Employees

When you have a shop, the tires and the funding, it's time to hire a couple of employees. Always start slowly because most new businesses don't make a lot of money. It takes time to build a business, and you want to be sure you can pay your employees. Do background checks to make sure you've hired trustworthy workers, and train them well. Providing excellent customer service is important at a tire shop, as it is for any new or established business.

• Business Type
• Business Plan for Used Tire Shop

Used Tire Shop Small Business Idea and Business Plan

Starting your own small business in the UK isn’t easy but having a properly developed business plan will help you achieve success.

To start a Used Tire Shop business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Used Tire Shop business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Used Tire Shop business isn’t easy, but when done right, it can lead to a lot of success.

To help you get started, you can use the free business plan builder tool to develop your own Used Tire Shop business plan.

The business plan template is very easy to use, is interactive and will quickly and easily help you create your business plan just by answering the needed questions about your small business idea.

Create your own Used Tire Shop business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by UKStartups.org to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Used Tire Shop small business in the UK.

When you have completed your Used Tire Shop business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Used Tire Shop business startup.

If you are looking to limit your startup costs when starting up a Used Tire Shop small business in the UK, this free business plan builder tool will be it.

Starting a Used Tire Shop business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Used Tire Shop business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Used Tire Shop business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Used Tire Shop industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Used Tire Shop businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Used Tire Shop business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Used Tire Shop business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Used Tire Shop business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Used Tire Shop business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Used Tire Shop business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via UKStartups.org and through the Small Business Startup Platform as a member.

If starting a Used Tire Shop business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

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Used Tire Shop Business Plan

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Resources On Used Tire Shop

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Description

Executive Summary

Products & services, market analysis, marketing plan.

• Management Plan
• Financial Plan

The problem that our business is solving is the high cost of purchasing new tires for vehicles, which can be a significant expense for car owners. Our store addresses the identified need in the market for affordable, high-quality used tires that are just as reliable and safe as new tires. Additionally, there is a lack of customer service and expert advice in the tire industry, and our business aims to fill this gap by providing exceptional customer service and expert tire installation services to our customers.

Tire Haven is a walk-in, off-line retail store that aims to provide an affordable solution for vehicle owners who need high-quality tires. We understand that purchasing new tires can be expensive, and that’s why we have a wide selection of affordable, gently used tires in excellent condition. Our expert tire installers have years of experience and are dedicated to providing exceptional customer service. We take the stress out of searching for affordable tires that will fit your vehicle’s needs. Our goal is to solve the problem of costly tire replacements by offering a budget-friendly solution without compromising quality or safety.

Target Market

Our target market is vehicle owners who are looking for affordable, high-quality tires. Specifically, we will be serving customers who prefer to purchase used tires that are still in excellent condition. Our customers will come from various income levels, but all are seeking to save money on their tire purchases without sacrificing quality. In addition, we will be targeting customers who value exceptional customer service, and who are looking for expert tire installation. Our storefront in Chicago, Illinois will serve local customers who prefer to walk-in and browse our tire selection in person, while our online advertising and marketing efforts will attract customers from surrounding areas.

Competition

The used tire market is highly competitive, with a variety of alternatives and substitutes available to consumers. One of the main competitors is traditional tire retailers, who often offer a selection of both new and used tires. Other competitors include online retailers, who offer a wide selection of tires at competitive prices, as well as local classifieds and online marketplaces where individuals sell their own used tires. However, Tire Haven aims to differentiate itself from competitors by offering a wide selection of high-quality, affordable used tires coupled with exceptional customer service and expert installation. By focusing on these key value propositions, we aim to establish a loyal customer base and become a leading supplier of affordable, high-quality used tires in the region.

Financial Summary

Here are the key highlights of our financial plan:

• We aim to generate a revenue of $500,000 in our first year of operation.
• We plan to achieve a net profit margin of 15% in our first year.
• To cover expenses such as inventory, rental, marketing, and advertising costs, we aim to secure initial funding of $250,000.
• Our cost structure includes tire acquisition costs, employee wages, rent and utilities, and marketing and advertising expenses.
• Our revenue streams are from used tire sales and installation services.
• We understand the importance of excellent customer service and aim to establish a loyal customer base to generate repeat business.
• We plan to expand our business by opening additional stores in other cities in the future.

With a focus on offering affordable, high-quality used tires, expert installation services, and exceptional customer service, we are confident that we will meet our financial goals and establish ourselves as a leading supplier of used tires in the region.

Funding Requirements

In order to start the Tire Haven business in Chicago, Illinois, we require an initial funding amount of $250,000. The funding will be used for the following expenses:

• Inventory acquisition costs - $100,000
• Rental costs for the storefront - $50,000
• Employee wages - $30,000
• Marketing and advertising expenses - $40,000
• Miscellaneous expenses - $30,000

The initial funding will help us cover these expenses and set up the business properly to achieve our financial and funding goals. We are currently seeking investors to provide this funding and help us make Tire Haven a successful and profitable business in the Chicago region.

Milestones and Traction

Our company, Tire Haven, is excited to embark on this journey of providing affordable, high-quality used tires for all types of vehicles to the residents of Chicago, Illinois. We have set a clear roadmap of where we currently stand and specific milestones we plan to hit.

With these milestones and targets, Tire Haven aims to become a leading supplier of affordable, high-quality used tires in the region, providing exceptional customer service that sets us apart from the competition, and expand our business across the country.

Problem Worth Solving

For many vehicle owners, the cost of buying brand new tires can be prohibitively expensive. This can be a major pain point for those who need new tires but simply cannot afford to purchase them at full retail price. Additionally, some customers may be concerned about the quality of used tires and the expertise of those performing the installation.

At Tire Haven, we offer a solution to these problems by providing a wide selection of affordable, high-quality used tires for all types of vehicles. Our expert tire installers ensure that each tire is properly installed and balanced, giving our customers peace of mind when it comes to safety on the road. Our exceptional customer service also sets us apart from the competition, making it easy for customers to find the right tires for their needs and receive the help they need throughout the installation process. Our goal is to be a leading supplier of affordable, high-quality used tires in the region and to provide our customers with a cost-effective and safe alternative to purchasing brand new tires at full retail price.

Our Solution

At Tire Haven, we offer a wide selection of affordable, high-quality used tires for all types of vehicles. We understand that finding the right tires for your car can be a daunting task, but our knowledgeable staff is always ready to assist you in making the right choice. We pride ourselves on our expert tire installation services, ensuring that your tires are fitted properly for maximum safety and performance.

Our solution addresses the problem of high tire costs for vehicle owners. We aim to provide affordable options without compromising on quality. Our products and services are designed to meet the needs of our customer base, who are looking for reliable and cost-effective solutions for their tire needs. Furthermore, our exceptional customer service sets us apart from the competition, ensuring that our customers come back to us for all their tire needs.

Validation of Problem and Solution

Our Used Tire (Walk-in Off-line Retail Store) business plan is based on the premise that vehicle owners are in need of affordable, high-quality tires. We have done extensive market research, including surveys and focus groups, to validate our solution and determine the demand for our products and services.

In our research, we found that many vehicle owners are in need of new tires but are hesitant to purchase brand-new tires due to the high cost. In addition, many owners are also concerned about the quality of the tires they purchase. Our solution addresses both of these concerns by offering affordable, high-quality used tires that meet or exceed industry standards and come with a 30-day guarantee.

We have also tested our solution in the market by opening a test store in a local shopping center. The store was well-received by customers who appreciated the affordable prices and exceptional customer service we provided. We received positive feedback from our customers, and many have become repeat customers, further validating our business model.

Product Overview

Tire Haven is a used tire store that offers a wide selection of affordable, high-quality tires for all types of vehicles. Our products are perfect for vehicle owners who are looking for cost-effective yet reliable alternatives to new tires.

Our expert tire installation service guarantees that customers will have a seamless, hassle-free experience from the moment they walk into our store. We ensure that our customers enjoy the benefits of immediately having their used tires installed on their vehicles by our skilled tire technicians.

By offering affordable, high-quality used tires, we help our customers save money without sacrificing quality and safety. At our store, customers can expect exceptional customer service, expert advice, and tire installation that is second to none.

The used tire business faces competition from both other used tire retailers as well as new tire sellers. However, Tire Haven differentiates itself by offering a wide selection of high-quality used tires at prices that are affordable to a wide range of customers. Our focus on exceptional customer service also sets us apart from our competition, with our expert tire installers providing personalized advice and installation services to ensure each customer receives the best possible product and experience.

Additionally, many of our competitors do not offer the level of convenience and ease of access that we do. By providing online advertising and marketing, we make it easy for customers to find us and learn more about our products and services. Our in-store sales and service further enhance convenience by offering customers an efficient and effective experience, so they can get in and out quickly while still receiving exceptional customer service.

Roadmap: Products & Services

At Tire Haven, we aim to provide affordable, high-quality used tires for all types of vehicles to our customers, while offering exceptional customer service and tire installation expertise. Our roadmap for establishing our used tire store has so far included the following steps:

We plan to continue following these steps, as well as others, as we establish and grow our used tire store business. We are committed to offering exceptional products and services to our customers, and becoming a leading supplier of affordable, high-quality used tires in the region.

Market Segmentation

The potential groups of customers for the used tire store can be segmented based on the following characteristics:

By targeting these different segments, the used tire store can tailor its marketing and sales efforts to specific customer groups, which can result in increased customer satisfaction and revenue growth.

Target Market Segment Strategy

Our ideal customer is a vehicle owner in need of affordable yet high-quality tires for their car, truck, SUV or van. We target those who are wise with their money and want to save money in the long run by purchasing used tires in good condition. Our customers prioritize quality and safety, and they want the peace of mind that comes with expert tire installation and excellent customer service.

We also aim to target those who are environmentally conscious and prefer to buy used tires rather than contributing to the growing problem of tire waste in landfills. By providing a selection of used tires in good condition, we serve this segment of the market while also providing affordable options for vehicle owners who may have a limited budget for new tires.

Key Customers

Our ideal customer archetype for our used tire store is the budget-conscious vehicle owner who is in need of new tires but doesn't want to break the bank. This customer values quality and our expertise in selecting high-quality used tires that offer a great value. They appreciate our focus on excellent customer service, including expert advice and installation, and are likely to become loyal advocates for our business.

Future Markets

Based on the market analysis, there is potential for the used tire store to expand its offerings to include new tires and additional vehicle services such as oil changes and brake replacements. As the store gains a reputation for affordable, high-quality products and excellent customer service, it can attract a wider range of customers beyond just those looking for used tires. In addition, the store can explore partnerships with local auto repair shops to expand its customer base and offer bundled services. Overall, the business strategy is adaptable and has the potential for future growth and expansion.

Here is a table of potential competitors in the used tire market:

Our used tire store differentiates itself by offering a wide selection of high-quality used tires at affordable prices, with a focus on excellent customer service and expert installation. We also aim to build strong relationships with our customers to keep them coming back for future tire needs.

Marketing and Sales Plan

Our marketing strategy focuses on reaching vehicle owners in the local area who are in need of affordable, high-quality used tires. We will utilize a combination of online and offline advertising channels to drive traffic to our store and promote our services.

Our overall goal is to establish ourselves as the go-to destination for used tires in the local area, and to generate consistent revenue through tire sales and installation services.

Based on market conditions and our pricing strategy, we anticipate a steady stream of sales for our used tire store. Our focus on affordability and high-quality products, combined with exceptional customer service, will attract a large number of vehicle owners in need of new tires.

We will also implement a variety of marketing and advertising strategies to increase brand awareness and drive traffic to our store. This includes online advertising, such as Google and Facebook ads, as well as local marketing efforts, such as flyers and billboards in high traffic areas.

Our capacity for sales will be largely dependent on our inventory levels and staff availability. As we establish ourselves in the market and expand our offerings, we anticipate an increase in sales and the potential to open additional stores in other cities.

Location and Facilities

Our marketing and sales plan revolves around utilizing both traditional and digital marketing channels. We aim to leverage technology to enhance our online presence and improve customer experience in-store. Our website will be optimized for easy navigation and visitors will be able to access our inventory of used tires with ease. We will also implement online advertising through social media and Google AdWords to reach a larger audience.

Additionally, we will incorporate technology in our tire installation services by utilizing state-of-the-art equipment for mounting and balancing tires. This advanced technology will ensure quick and precise tire installation, reducing wait times for customers and increasing operational efficiency. Our tire installers will be trained to operate this equipment and provide excellent service to customers.

Overall, technology plays a crucial role in delivering exceptional customer service and a seamless retail experience in our business model.

Equipment and Tools

Running a used tire store requires several essential pieces of equipment and tools to offer customers the best service possible. Here's an outline of the necessary equipment and their estimated costs:

It's essential to invest in high-quality equipment to offer the best service and attract repeat customers. We plan to buy most of this equipment, and some of them will be rented as per our business needs.

Management and Organization

Organizational structure.

Our used tire store has a hierarchical organizational structure with clear roles and responsibilities for each employee. The management team includes the owner, who oversees overall operations and decision-making, and a store manager who is responsible for day-to-day activities such as inventory management, sales, and customer service.

The flow of information between levels of the organization is streamlined to ensure efficient operations. The owner communicates with the store manager and employees to set goals and provide guidance, while the store manager communicates with the customer service representatives and tire installers to ensure smooth operations and customer satisfaction.

Management Team

As the owner and founder of the used tire store, I will be responsible for the overall management and direction of the business. However, I anticipate hiring a team of experienced and knowledgeable individuals to take on high-level management roles within the company.

One potential candidate is a tire industry veteran with over 15 years of experience in tire sales and installation. This individual has a proven track record of success in managing a team of sales associates and technicians, and is well-versed in all aspects of tire sourcing, selection, and installation.

Another potential candidate is a customer service expert with extensive experience in the automotive industry. This individual has a deep understanding of the needs and preferences of vehicle owners, and is committed to delivering an exceptional customer experience at every touchpoint.

Together, this team of skilled professionals will ensure that our used tire store delivers high-quality products and services, while providing excellent customer service to all of our valued customers.

Management Team Gaps

Currently, we do not have a candidate for a dedicated marketing and advertising position. As such, we may need to partner with external parties to address this gap. Additionally, we may need to hire additional staff to accommodate business growth and maintain our focus on excellent customer service and expert tire installation.

Personnel Plan

Running a used tire store requires a team of skilled professionals to ensure excellent customer service and expert tire installation. Below is a potential list of positions we expect to require:

We will ensure that our team is well-trained, motivated, and committed to providing the best possible service to our customers.

Company History and Ownership

Tire Haven is a start-up used tire store located in Chicago, Illinois. The business was founded in [insert year] by [insert founder name(s)] who had noticed a gap in the market for affordable, high-quality used tires for all types of vehicles. With [insert number of years] of experience in the tire industry, [insert founder name(s)] saw an opportunity to provide a convenient and reliable solution for vehicle owners who were looking for affordable tire options without sacrificing quality.

The founders' vision for Tire Haven was to create a business that not only provided excellent customer service but also helped vehicle owners save money on their tire purchases. They aimed to achieve this goal by sourcing a wide selection of high-quality used tires and offering them at prices that were unbeatable in the market. Additionally, they recruited a team of expert tire installers and customer service staff who could deliver the best possible tire installation experience to customers.

As the business continues to grow, the founders plan to expand by opening additional stores in other cities while maintaining the same level of exceptional customer service and high-quality products that they have become known for. With a strong customer base and a solid plan for growth, Tire Haven is poised to become a leading supplier of affordable, high-quality used tires in the region.

Our management and organization team has developed a detailed roadmap of specific goals and objectives that we plan to achieve in order to manage and steer our business towards success. Here is a summary of some of our key milestones:

Key Metrics

As a used tire store, it's crucial to track key metrics that help gauge the overall performance and health of the business. Key performance indicators (KPIs) that we will track include:

• Total sales revenue
• Number of new customers
• Customer satisfaction ratings
• Inventory turnover rate
• Tire installation efficiency

By regularly monitoring these metrics, we'll be able to identify areas to improve on and make data-driven decisions that help us provide the best service to our customers while remaining financially sustainable.

Financial Plan and Metrics

Sales forecast.

Here's a breakdown of the projected sales for our Used Tire walk-in off-line retail store for the next three years (2023, 2024, 2025). The data is organized in an HTML table with the first column representing sales forecast broken down by product categories and the remaining columns for each year.

As you can see, we project a steady increase in sales revenue over the next three years, driven by our focus on delivering affordable, high-quality used tires and exceptional customer service.

Starting a used tire store comes with several upfront costs, including:

Operational expenses must also be taken into account when running the used tire store:

Projected Profit and Loss

Our revenue streams will come from sales revenue of used tires and installation services. We project a net profit margin of 15% in our first year of operation and aim to increase it in the following years. See the table below for our projected profit and loss statement for the next three years:

Projected Cash Flow

Here is a table outlining the projected cash flow for Tire Haven for the next three years:

As seen in the table, we project to have a net inflow of $500,000 by 2025 and a cumulative net cash flow of $1,050,000 by the end of year 2025. These projections are based on attaining a revenue of $500,000 in the first year of operation as stated in our business goals.

Projected Balance Sheet

Here is the predicted balance sheet statement for three years; 2023, 2024, and 2025 representing the categories for Assets, Liabilities, and Equity. The table below exhibits the financial outlook for the Used Tire Walk-in Off-line Retail Store business plan.

The projected balance sheet envisions that the company's assets will grow over the years, ultimately reaching $200,000 by 2025. The liabilities forecast an increase from $80,000 in 2023 to $110,000 in 2025 while the equity is predicted to grow steadily from $70,000 to $90,000 in 2025. These balance sheet categories demonstrate the financial stability of the Used Tire Walk-in Off-line Retail Store business plan.

Our used tire store will require knowledgeable and experienced tire installers and customer service representatives to ensure customer satisfaction. We intend to hire individuals who are passionate about cars and have a strong understanding of tire selection and installation.

We will offer competitive wages and benefits to attract and retain top talent. Our tire installers will receive compensation based on their experience and expertise, while our customer service representatives will receive a base salary plus commission based on sales.

Employees will play a crucial role in our business operations, as they will be responsible for providing expert advice to customers and ensuring a smooth tire installation process. They will work closely with our tire suppliers to maintain a wide selection of affordable, high-quality used tires and to stay up to date on the latest tire technology and trends.

Use of Funds

As part of our financial plan, we will be utilizing the initial funding of $250,000 to cover the following expenses:

Our goal is to achieve a revenue of $500,000 in the first year of operation, with a net profit margin of 15%. As our business grows, we plan to reinvest profits into expanding the business by opening additional stores in other cities.

Exit Strategy

Our intention is to build a successful and sustainable used tire store with a strong customer base and profitable revenue streams. In the event of an exit, we are open to options such as acquisition by a larger tire retailer or passing along the business to a family member or employee who is interested in continuing the venture. We will continuously evaluate our financial position and market conditions to determine the best course of action for the future of the business.

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Sample Tire Shop Business Plan Template

Tire shop business plan sample.

If you love cars and everything that has to do with it but you don’t have the necessary fund to open a mechanic shop, you can alternatively open a tire shop. Starting a tire shop business requires less hard work and it is as profitable as a full vehicle or service repair business.

If you are having problems starting a tire shop business, here is a complete guide to assist you in starting one in your locality. Tire is as important as every other part in a car. No car can move without tires and car owners want to run with a good tire.

Tires suffer most of the damages in a vehicle which calls for the services of a tire shop to help assist car owners with good tires. The best thing is that, you don’t need large capital to start a tire shop business. You just pick a good location, get a jack and few equipment and work your ass as your business grows.

The starting process can be fun and exciting and rewarding too. Tire business goes beyond just selling. You can deliver so many services like alignment and balancing, air pumping, fixing up punctured tires, oil change etc.

If your one of your goal is to start a tire shop business, here are what you need to know to get started;

HOW TO OPEN A TIRE WHOLESALE BUSINESS

• Draw up a Business Plan

Drawing a business plan for your tire business is one key to get started in the business and in any business. Investors won’t even consider giving you loan if you can’t show them a business plan for your tire shop business.

Another good thing is, while preparing your business plan, it will force you to start thinking about important factors to consider in your business. Please, don’t skip this process. While drawing your business plan, be certain about your target customers, your competitors, marketing strategies, company’s name and financial requirement.

• Be Grounded about Tire and Vehicle Servicing

Having a good knowledge about the business you are going into will be a good start for you. Tires and wheels come in different sizes, shapes and prices. There are tires for sport vehicles, trucks and commercials vehicles. You should know about them so you don’t look like a novice in front of your customers.

The best way to learn about this is to either go learn from a successful existing tire shop dealer where you have to work for the owner or you spend enough time at where you will always be making purchases to ask questions.

• Evaluate your Competitors

To be assure of the success of your tire shop business, you will need to evaluate your competitors in the vicinity you wish to site your business. Don’t just pick a location before doing this, it is very paramount if you want to start seeing good result at the start of the business.

It is better thinking of how you can grow your tire business than thinking of how you can beat your competitors. If there is a well-known competitor in the town you would like to site your tire store, it will be very hard for you.

Notwithstanding, you will still make money but it will take time to build relationship and trust with your customers and grow your business. Have it in mind that your customers will want to compare your services with their former before they can trust that they will patronize your business.

• Pick a Location

The ideal location for a tire shop business is a busy road that is accessible by trucks and commercial cars and maybe close to a gas station if possible.

• Obtain Licenses

You will have to obtain necessary licenses and documents needed to operate a tire shop business before you get started to avoid any government agency distrusting your business operation.

• Decide on your Niche

You have to decide if you want to be selling new tires, old ones or both. And establish a good relationship with tire suppliers (manufacturers or wholesalers). Good tire brands include Michelin, Good Rich, Good Year, BF. Get the necessary tools and equipment like wheel balancers and handlers too to get those tires fixed properly.

• Apply for Business Insurance

Apply for business insurance to protect your business against unforeseen circumstances like fire and theft.

• Market your Business

Your clients need to know that your business exist. Market and promote your tire shop business to attract customers to you. You will need to have a budget for this. Offering discount to your first-time customers is one good way to spread the news about the existence of your tire shop business and it location.

This is all you need to start a tire shop business in your locality and make good money out of it.

Here is a sample business plan for starting a tire retail shop.

TIRE SHOP BUSINESS PLAN EXAMPLE

With special focus on a tire shop business, this article specifically focuses on providing a working sample for entrepreneurs interested in this area of business but who have inadequate knowledge on how to put together a proper business plan.

Through the provision of the right guidelines, the entrepreneur is enabled to follow these laid down guidelines in writing his/her unique business plan through a process of brainstorming on what is true for his/her business. We begin the tire shop business plan sample under the following;

Executive Summary

Products and Services

Our Mission

Target Market

Competitive Advantage

Sales and Marketing Strategy

Revenue Projection

Publicity and Advertising Strategy

Payment Options

Durable Tires LLC to be located in California is a wholesale and retail tire shop business that will be offering quality tires that range from both brand new and fairly used tires. With adequate feasibility studies carried out, we will be competing favourably with other businesses that offer related services, ensuring that the viability of our business is assured through increased sales.

With mainly tire products as our main areas of expertise, we will be including a wide range of tire brands among our displayed tire products. This is in a bid to cater for the specific needs of our diverse clients who have their different tire brand preferences.

Among the products to be displayed at our business outlets are; the retail/wholesale of light vehicle tires, heavy duty trucks, tubes, rims, and also the provision of vulcanizing services among other value added services on offer.

Our vision at Durable Tires LLC is to be among the biggest tire shops within California within the first 5 years of our commencement of business. This will be driven by the high professionalism, fuelled by a dedicated workforce committed to accomplishment of the vision and ideals of our business.

Also, we have the vision of being a one-stop shop for all tire brands, ensuring that all major tire brands are available at all times. Building a good working relationship with major suppliers will help in achieving this goal.

At Durable Tires LLC, our mission is to fill the gap in demand of quality tire products, ensuring that while satisfying these critical needs, a good profit is made at no increased expense cost to our esteemed clients.

Our outlets will not be restricted to California alone, as we would be expanding our services to effectively cover the entire United States within 10 years from the commencement of business.

Our target market will include all automobile users. We will be including the sale of fairly used tires to the new ones in a bid to accommodate a wide range of clients with different financial strengths. Some of these include car owners, car dealerships, car hire companies, corporate bodies among several other targeted clients.

With our competitors offering essentially the same type of service, we will be brining in innovation into the way we offer our services to ensure that clients are treated to a much better service experience from our dedicated workforce.

Some of these areas of our competence include the strategic location of our tire shop which is located in a busy neighbourhood with lots of foot and vehicular traffic, raising the likelihood for increased patronage.

Also, we will be ensuring that our collections of tires are more diverse than what is obtainable in other tire shops in California. This is a strategy to increase patronage due to adequate stocking of tires of all brands, ensuring that clients do not need to go from one dealer to another.

Among the sale and marketing strategies to be adopted is the creation of awareness among potential clients through the dissemination of introductory letters to both individuals and organizations to acquaint them with the services we render.

Also, we will include a discount system to encourage and attract patronage to our tire shops.

We have carried out a research within the tire shop business industry, and findings have shown that we will achieve a steady growth in our revenues. Among the variables used for this research, variables such as the effects of economic recession and natural disasters have been discounted in arriving at the conclusion.

A brief summary is presented in the chart below;

• First Year $310,000
• Second Year $500,000
• Third Year $780,000

The publicity and advertising strategy to be deployed will include a wide range of channels such as paid adverts in both print and electronic platforms, the exploitation of the internet through the use of social media platforms to spread word on services offered by us.

We will also have a functional and user friendly website that will be displaying all the services offered by us.

The payment options to be used by us will include a variety of channels to adequately cater for the payment preferences of clients. Among such options are the use of POS machines, acceptance of cash payments, the use of mobile banking platforms, and acceptance of cheques among several other payment options.

This article has focused on the tire shop business plan sample , providing the basic requirements for writing an effective business plan for entrepreneurs that encounter difficulties in writing good business plans.

By following the procedures laid down, all the entrepreneur needs to do is simply to follow these procedures while brainstorming on what is true for his/her business.

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Guide to Starting a Used Tire Business

With tons of car owners buying a new set of tires every day, many choose to purchase used tires. Not only are they 30% to 50% cheaper than new tires, but if you’re lucky, you can get used ones in great condition. Moreover, promoting the consumption of used tires can help reduce the amount of thrown-away rubber in landfills.

If you’re an entrepreneur looking to start a profitable and sustainable venture, a used tire shop is worth considering. Besides the obvious profits, owning this business can help reduce the impact of toxic materials that are harmful to human health and the environment. If you’re interested in starting a used tire shop, follow these steps.

1. Determine the startup costs

One major startup cost of starting a used tire business is the retail location. You should have an area for your retail space, a storage area for inventory, and a garage for servicing vehicles. Keep your overhead at a minimum by opting for a space in a low-rent district. The second primary area to look into is your equipment costs. Used high-quality machines and tools in good condition are better compared to new but lower-quality equipment.

Secondhand quality machines are more efficient to use, which means you can cut labor costs and time when installing tires or providing extra vehicle services. The third one is the used tires. Acquire a varied selection of both high-performance and low-profile tires. You can get used tires on retreading centers, junkyards, and other tire stores.

2. Acquire the equipment and tools

Many used tire shops choose to set up a garage to accommodate simple customer needs such as changing the old tires or simple maintenance checks. If you’re also looking to offer service and replacement, the first equipment to invest on is a tire changer. Consider the performance, type, and size of the tire changer.

There are particular tire changers designed for handling standard wheels up to 24 inches, low profile wheels, and heavy-duty wheels. While larger machines are more costly, they are more durable and versatile than others.

Next on the list is a two-post car lift , which is crucial for ensuring your safety when servicing cars or replacing wheels. Decide if you want a lift with a baseplate or overhead design. A baseplate design is preferred at low ceiling garages since it has a shorter construction.

On the other hand, this model makes it hard to use tools like transmission jacks or tall stand supports since it places a bigger plate below the car. If you prefer something with good support and stability, a vehicle lift with an overhead design is your best bet. It’s ideal for garages with limited space, providing you or your mechanics with great access to the cars during servicing.

Some other equipment you’ll need include a tire inflation system, an oil extractor, a wheel balancer, and a wheel alignment. One of the most important things that you do not want to overlook is sorting through the different business security systems and select the system that is best for your business premises so that your business is secured 24 hours a day.

3. Handpick your supplier

In opening a used tire shop, you’ll need to source different consumable supplies that are vital for your offered services. Some of these include patches, wheel weights , valves, lubricants, and chemicals. When sourcing these items, choose a supplier which sells them of top quality and has an impressive reputation in the industry.

At the same time, ensure they can take accountability for quality issues regarding the auto parts or tools you purchase from them. Your tire shop’s reputation is at stake when servicing your clients so be careful in picking your suppliers and the supplier. If you’re looking for a long-term partner, you’ll need to check on additional factors such as expertise in your target market, production capabilities, ethical and regulatory compliance, and ease of communication.

4. Create an advertising plan

Opening a local used tire shop requires good advertising tactics to boost profits. It’s just like any other business. Craft a plan that lists strategies suited for your tire business. Some of the basic ones include publishing print media ads for the grand opening, offering special discounts for every purchase, and providing pick-up and delivery services to local clients. You can also offer and promote bonus services like wheel balancing or give promotional gifts to loyal clients.

T-shirts or items with your tire shop’s name are a good brand-building tool. Besides locals, you can also broaden your customer base by selling tires online. Provide a complete and accurate invoice with each transaction for your customers. Set up a website for your tire store or use e-commerce and social media platforms to sell your used tires and share your advocacy for saving the environment.

Starting a used tire shop won’t just help you generate good profits but also set an amazing example for promoting sustainability in the automotive industry. Help car owners avail of more affordable tires and take part in saving the environment by selling used tires. Take your time and plan your new business carefully using this guide.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of  SpeedwayMedia.com.

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How to Start a Tire Shop Business | Follow 9 Steps to Start Tire Shop Business

Information presented on this web page is intended for informational and educational purposes only and is not meant to be taken as legal, financial, investment or tax advice. We do not accept any responsibility for any trading or investment related losses. Please review our disclaimer on before taking action based upon anything you read or see.

The world’s largest manufacturers of tires are making billions of dollars each year. For example, Good year revenue.com made a profit of $14.6 billion in 2017. Financial experts predict that tire sales will reach up to $258 billion by 2019, so whatever your business and by leaving it, you can enter into a tire shop business by opting for some legal steps. In this guide, I will discuss the steps on how to start a tire shop business.

How to Start a Tire Shop Business

To start a tire shop business follow the below steps;

Craft a business plan

Research the tire market, secure funds for your tire shop.

• Choose an ideal location.

Arrange equipment for the tire shop

Legal registration of your business, business liability insurance, hiring a supplier, permits and licenses for the tire business.

Before starting a tire business, you should craft a business plan for the tire shop and choose your niche, as the decision is necessary to sell online or open a brick and mortar tire shop.

Also, plan about what services and products you will offer in your tire business to your customers. One way to make your profits to the maximum level is to offer extra services like tire replacements, car-washing and repairs, vehicle towing, and many more .

Before starting a tires business, you should research the target market of tires, its audience, and your primary competitors. Analyze the structures of businesses, case histories, expenses, how the industry is growing, and assets the startup costs.

The worldwide tire market foresight to reach $260 billion by 2023 and it is making a compound annual growth rate of 4.4%. The net sales of a good year are worth over $15.5 billion in 2018. 

The tire dealers in America are earning about $41 billion in revenue in 2019. Existing in the US market, 36,000 companies are operating as low rolling tires. Fuel-efficient tires are growing in trend due to the rise in consumer income.

Moreover, a growing number of business owners are selling highly specialized products like passenger tires, light truck tires, and off-road tires.

According to the rubber manufacturers Association , 10% of drivers have used tires on their automobile, translating into about 30-35%. These numbers may be surprising and show how many people think that buying new is always better.

The moderate size tire shops have minimum expenses and have a profit margin of around 20% or more, but to open a big store today, the business owner has to invest $1 million to purchase prime real estate in the metro area and $500,000 for the actual building.

Running a tire shop is not an easy task, as it may need to get a loan to invest in starting up the new tire shop and the tire repair shop. Your business plan will be a great tool to determine whether your brand defines the products, whether the steps are accurate or not, and how much your tire shop business is viable.

With increasing fuel prices and environmental concerns, the demand for new tires is booming. Experts predict that global tire markets will grow by 8-bit in value over this same period with a CAGR ( Compound Annual Growth Rate ) rate of around 8%.

See this post: How to Start a Catering Business in California .

Choose an ideal location .

Opting for an ideal location is an essential factor in running a successful tire business of tires. Your shop should be at such a location where not so many of your competitors exist.

There are some critical factors you should remember according to the rules and regulations of the US.

Accessibility

Your tire shop should be where access to multiple roads is easy, as it will be profitable to get the target customers.  

To offer visibility to your business, the tire shop should be at a prime location to be visible to everyone. The location of the tire shop should be near the road networks.

Storage space

You will need a big store to keep the stock of tires for an extended period. 

Parking space

The majority of people like to go to stores with parking places so should nave the one with enough parking.

The overhead costs and requirements such as equipment for the tire shop are minimum. All you need is the patches and plugs and the capacity to pull the tire off the rim and reinstall it after doing all repairs.

The amount and balance machine, weights, and balance of the rim of tires are the primary tools for this business. You will need jack stands and floor jacks to lift the vehicles like other automotive shops.

An air compressor machine is essential to operate an air gun to plug the nuts. You can also do this task manually with the help of a lug nut wrench, but the air gun is a special tool to set the pressure specifications and tight the lug nuts perfectly.

To make your business legal and lawful, the registration of your tire shop is a significant factor. You can determine the relevant legal authorities in your location and ask them to provide the necessary documents for the registration. Online services are also available on the internet to provide you with the legal documents required for registration. 

Building your separate account for your business is good as it improves financial accountability and helps to check the business expenses. If you have a business account, it will be a tool for investors to determine your creditworthiness, and you can get the loan quickly. Moreover, an additional benefit for the business account is that you have less chance of losing everything in case of a lawsuit.

Read More: How to Start a Car Export Business .

It will be a beat option for you if you source your tires from a valuable supplier. Another way of getting the tires is from junkyards, repair shops, and gas stations. Make sure to inspect the tires for the following issues.

Check these below things;

• past repairs and physical defects
• tread depth

If your tire shop is a super tire repair shop, you have to register its name with the DBA trade business name, also known as fictitious business name registration. If you hire the employees for your business.

You will need a federal tax ID and state employer ID; you also need to create the LLC or incorporate rather than a file with the DBA assumed trade name. Get the business permit to dispose of all old tires, apply online and obtain the permits for this purpose.

The total estimated costs and investment to start a tire shop business in the United States of America in 2021

Frequently Asked Questions

Is it advantageous to sell secondhand tires.

Used tire stores may be lucrative. They make more money than tire stores that offer completely new tires. Due to the possibility of negotiation, the large profit ratio corresponds to a bigger stream of customers.

How much amount of money do you need to open a tire shop?

The initial investment to open a tire shop requires up to 10 lacks. 23 lakh is the initial investment which is necessary for the equipment and machinery cost. 

Are our tire shops profitable?

Tire shop profitability is determined by a number of criteria, including shop strength, stock, team composition, pricing, geography, revenue, and servicing demand. Tire businesses of a medium-size need modest overhead and might anticipate profitability of roughly 20% or higher.

What month is best to buy tires?

The best month to buy tires is October and April. But if you need to buy the tires out of these two months, there is no need to put yourself and anyone else to save some dollars.

How can I make money selling tires?

Look for the coupons and rebates at the tire manufacturer websites. Manufacturers like Good year.com, Michelin.com, and other companies offer promotions on their websites to sell tires.

Is selling tires a good business?

Although the vehicle market is always changing, tires stay steady, and the tire store remains successful. The tire industry has several diverse segments, spanning from sales to maintenance.

What is the profit margin on tires?

According to the rule, the independent automotive service shop should get a 70% gross profit minimum.

To wrap up, the article on how to start a tire shop business, especially in the USA, is somewhat tricky. If you follow the legal steps, rules, and regulations, you may quickly go through the whole process—moreover, the estimate of costs and investments given above the rough figure.

However, for that purpose, we suggest our users investigate the market and directly contact the distributors and wholesalers of types of tires , tubes, and rims if they want to retail to get the original prices of these products. The fact is that if you are an excellent bargainer, you can have the best deal in comparison to the price list given above.

Hello! I’m Annan Bhadra, a financial specialist and passionate writer. I have always been captivated by finance and its potential to empower individuals and communities. My academic journey began with an O level from the British Council, where I studied Accounting and Commerce. I then pursued my A level, focusing on International Business, also at the British Council. My passion for understanding the global economy led me to East West University, where I earned a degree in Economics. These educational experiences gave me a strong foundation in the financial world and fueled my desire to help others navigate their financial lives. I’m always eager to learn, grow, and share my knowledge with others, so feel free to contact me for any financial advice or to discuss potential collaborations. Let’s work together to create a brighter financial future for all!

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Tire Inventory Management

Simple to advanced complete tire inventory system for used and new tires., tire shop software, essential tools to successfully manage your tire shop or auto repair shop », sales and tire shop invoicing, full featured invoicing and point of sale system to increase sales and improve your bottom line », business visibility, features to gain exposure, increase customer engagement and build your business ».

• Flexible, Easy to Use, Tire Inventory System
• Basic to Advanced Inventory Workflows
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• Performance Reporting Tools
• 100,000+ Brands, Models & Tire Specifications
• Control Used and New Tire Inventory from any computer or mobile device.
• Quickly find any type of tire in seconds (Regardless of Inventory Size)
• Immediately answer customer inquiries
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• Understand the best tire sizes to stock
• Know the exact value of your inventory
• Identify matching tires to build pairs & sets
• Generate Reports on Tire Sales, Inventory Status

We Deliver the Most Complete and Flexible New-Used Tire Software Available!

Capturing Tire Details

Effective search tools, labeling & identification, storage management, sales - sales - sales, advanced features, proven to grow your tire business.

• Sales and Shop Performance Tools
• Customer Appointment Scheduler
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• Easily Invoice and Sell Tire Inventory , Products & Services
• Create Invoices, Work Orders and Estimates
• Save Detailed Customer and Vehicle Information
• Track Customer Purchase History
• Include Labor Items and Services
• Sell Brake Jobs, Alignments and Oil Change Packages
• Quick Sale Feature
• Configure Sales Tax, Labor Rates and Shop Fees
• Personalized Invoice with your Logo and Shop Information
• Define and Display Return and Warranty Policies
• Create Billing Statements - Receive Payments on Account
• Email Customer Invoices and Billing Statements
• Build Product Packages and Special Discounts

Start Selling for Free Today!

New Tire Catalog

Storage is integrated with existing features including customer invoicing, vehicle information and other essential areas.

Effectively manage large volumes of used tire inventory from the point of collection to resale, distribution and delivery.

Our application is designed to offer flexibility. We recognize the tools and features that your tire shop needs today are not always the same as you require in the future.

Whether you are managing an inventory of 100 or 100,000 tires, you’ll find what you need fast.

We have a proven track record of delivering results you need for your business.

There's no complicated software to install or manage. This means you are up and selling fast!

With us you won’t find any startup fees, complicated add-ons or long term contracts.

Our experience allows us to develop and introduce new functionality for your tire and auto repair business.

Innovative and Effective Tire Software For New and Used Tires!

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The Best Shopping Malls in Moscow

Dasha Fomina

15 August 2023

Nestled within one of the globe’s most opulent metropolises, Moscow’s shopping scene paints a diverse canvas that caters to every shopper’s desire. From extravagant luxury labels to trendy high-street fashion, this Russian capital is a treasure trove where shopping transcends budgets. Amid the city’s labyrinthine streets, shopping centers emerge as attractions in their own right, offering an experience that goes beyond retail therapy. Join us as we explore seven illustrious shopping malls that satiate your appetite for both indulgence and retail delights in the heart of Moscow.

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Russia’s main department store, the Moscow GUM is an ultimate architectural stunner, housing a variety of high-end boutiques. Built between 1890 and 1893 and known as the Upper Trading Rows until 1920, the legendary store is now home to over 200 boutiques selling a variety of brands: from luxury Dior to affordable Zara. Even if luxury shopping is not on your to-do list, the Moscow GUM is still worth a visit – the glass-roofed arcade faces Red Square, offers a variety of tasty Soviet-style eateries and makes a fantastic view in the dark.

Beautifully located in the historic centre of Moscow, the TSUM Department Store is mere steps from the city’s important tourist attractions, including Red Square. Built in 1908, the Gothic style store sells over 1000 famous brands, including Alexander McQueen, Lanvin and Carolina Herrera. Much like its cousin GUM, the TSUM Department Store is known for its luxury boutiques, stunning architecture and great eateries.

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Okhotny Ryad

Okhotny Ryad Shopping centre is yet another shopping mall in the proximity of Red Square, which unlike GUM and TSUM offers a more down-to-earth price tag. One of the largest shopping centres in Moscow, this underground arcade is home to over 160 brands of apparel, footwear, jewelry, makeup and perfumes. Okhotny Ryad is also known for its great food court, where most tourists come to stop by, once they’ve done a tour of the Kremlin .

Tsvetnoy Central Market

A pure hipster heaven, the Tsvetnoy Central Market, or simply Tsvetnoy is seven floors of shopping, eating and fun. From the high street ground floor to the deluxe boutiques on the fifth, Tsvetnoy sells brands for every taste and budget, including Walk of Shame, American Apparel, All Saints, and Vivienne Westwood. Awarded by multiple design accolades, the beautiful shopping mall is also home to many great pop-up shops, Moscow’s biggest Rive Gauche store and the best indoor farmer’s market in the city.

AFIMALL City

Somewhat farther from the city centre, AFIMALL City is a dramatically less crowded and very impressive shopping mall right in the heart of Moscow City Business District. Praised for its innovative design, the store comprises five levels of retail space with over 400 shops, 50 restaurants and cafés and an IMAX cinema. Built for adults and children alike, AFIMALL City is a must if you plan on visiting Moscow City Business District.

Metropolis Shopping Centre

Metropolis is where you should go for high-street retail if you don’t feel like traveling too far from the city centre. Home to boutiques like Zara, Marks & Spencer, H&M, New Yorker, GAP and River Island, Metropolis also houses a huge supermarket, bowling alley, swimming pool and a cinema.

Aviapark Shopping Centre

Of all the malls on the list, Aviapark takes the most time to get to, but Europe’s biggest mall is definitely worth the free shuttle bus ride. With over 500 stores, 80 eateries and a 17-screen cinema, all spread across the equivalent of 36 football pitches, Aviapark is officially the most popular shopping mall in Moscow. However, the major draw of the glass-roofed shopping centre is the 24-meter-tall pillar aquarium, filled with tropical fish.

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