used auto parts business plan

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How to Start a Used Auto Parts Business

Last Updated: October 15, 2022 References Approved

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Starting a used auto parts business can be an excellent way to make money and prevent older car parts ending up in landfills. In addition to helping the environment, you can assist people who cannot afford brand-new car parts to keep their cars in working condition.

Planning for Your Used Auto Parts Business

Most states require a license for businesses that buy, restore, recycle, and resell used car parts.

Running Your Used Auto Parts Business

Insurance companies may be willing to sell you parts of a vehicle to recoup some of their money, especially when selling the entire vehicle is not a practical option.

Image titled Buy a Used Car With Cash Step 6

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About This Article

To start a used auto parts business, develop a thorough business plan that outlines your budget, inventory, marketing strategies, and the areas you plan to specialize in. Choose a good location for your business and obtain any licenses, permits, and insurance required by law to sell to the public. Then, find a few good suppliers, stock your shelves with merchandise, and get the word out about your store to attract customers! For tips on monitoring your inventory, read on! Did this summary help you? Yes No

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Auto Parts Store Business Plan Sample

SEPT.23, 2013

Do you want to start Auto Parts Store business plan?

Are you looking to learn how to open auto part store? The business can be a great investment if you have a basic understanding of different kinds of automobiles and their part requirements. Starting an auto parts business is relatively simpler as it doesn’t require abundant resources.

The business management side is also relatively easy as you can start it on a small scale. There isn’t a need to have a huge team or a large shop to start up the business initially. This can significantly benefit you if you are new to management and business.

You can also easily draft up an ecommerce startup business plan for your business. As a guide you can look at related plans such as convenience store business plan . For a better reference, you can take help from this automobile parts business plan.

Executive Summary

2.1 the business.

Best Rev will be an auto parts store owned by Sheldon Cooper in Manhattan. The primary aim of the business will be to reduce the hassle of vehicle owners by providing them best condition spare parts for their automobiles. The business will offer a wide range of services and products for the ease of its customers.

2.2 Management of Auto Parts Store

If you are just learning how to start an auto parts business , the best advice you will find is to establish strong management. You can have good management through adequate planning. And there is no better way to plan out every aspect of your store than through an auto parts store business plan pdf like the one presented here.

You can also take aid from relevant business plans like used auto parts business plan or an auto dealership business plan .

In this business plan motor parts shop example, we will guide you about all the components of a strong business plan. Of course, you can alternatively also hire business plan experts to do this work for you.

2.3 Customers of Auto Parts Store

The customers of Best Rev will belong to all classes, and work domains as vehicles have become a fundamental part of life for a majority of the world’s population. The recurring customers of the business will be:

2.4 Business Target

The main aim of Best Rev is to become a reliable and trustworthy source of good auto parts and maintenance services among its customers.

The financial targets that the business wants to achieve within the first five years are mentioned below:

Auto Parts Store - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Best Rev will be owned and operated by Sheldon Cooper. Sheldon completed his Bachelors in Mechanical Engineering two years ago, after which he pursued an engineering position in a noteworthy motor company. However, six months ago, he left the post to fulfill his lifelong passion of starting his own automobile parts and maintenance store.

3.2 Why the Auto Parts Store is being started

Sheldon noticed that Manhattan experiences a lot of traffic, but there are no auto shops or parts stores located in the area or anywhere in the 15-mile radius. Here, he saw the opportunity to cater to vehicle owners of Manhattan and the nearby regions. The result was Best Rev, an auto parts store that deals with the maintenance and repair of vehicles and the provision of spare parts.

3.3 How the Auto Parts Store will be started

Step1: Plan Everything

Good planning is the most crucial step when learning how to start a car parts business. The best aid in planning and managing a business is its business plan. To write your vehicle spare parts business plan, you can take help from this automobile spare parts business plan. Best Rev is an automobile spare parts shop, for which the business plan is detailed here. You can take help from this example or go through other examples like used car dealership business plan to get an idea of what to include when planning for a start-up.

Step2: Define the Brand

What comes next is to highlight your business and its unique propositions. This can be achieved by creating a brand around your business idea. This will include everything from the principles it follows to its unique value above its competitors. This will introduce a good image of your business to your customers and also help you create a space for yourself in the market.

Step3: Establish Your Corporate Office

The next step is to manage the physical aspect of the business. Sheldon decided to rent out two back-to-back small shops in the main Manhattan commercial area. He decided that one of these shops would be the face of the business where all dealing will customers will take place. All the spare parts will also be stored in this area. In contrast, the other shop will be used to maintain and repair vehicles.

Step4: Establish a Web Presence

Establishing a web presence is integral in today’s market. Therefore, Sheldon decided to develop a website for the business and social media presences for marketing.

Step5: Promote and Market

The final step is to develop a good marketing plan and stick to it.

Before you start an auto part business, you need to decide on your business’s services to your customers. You may have many auto parts business ideas, but you can’t implement everything in the business initially. Therefore, you have to pick and choose what you will start with.

You can follow this guide on how to start an auto parts business to figure out what the market for the business looks like and what services are ideal to be included in your start-up.

The series of steps to follow can be confusing when learning how to become an auto parts distributor. Therefore, we have described everything here in detail. Since Sheldon started with a variety of services, this format can be used to develop even a flower shop business plan .

Spare Parts Distribution

Best Rev will sell spare parts for all kinds of automobiles as its base service. As a result, most of the auto parts in demand will be readily available, while there will also be an option for customers to order the parts custom to their vehicle.

Maintenance

In addition to providing spare parts, Best Rev will also offer maintenance services to its customers. This will include

The customers of Best Rev can also bring their vehicles to the store to get any part fixed. In addition, the business will have mechanics available at all times who will deal with any problems a vehicle might have.

Cleaning Service

Our last service will be the cleaning service. Our customers can bring their vehicles and get them serviced and cleaned in just 20-40 minutes, depending on vehicle type.

Marketing Analysis of Auto Parts Store

When starting an auto parts business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your automobile spare parts business plan pdf. This analysis should look into the past, present, and future market trends for you to make the best choices.

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Your automobile parts business plan should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for your own products and services.

If you don’t know what to include in your motor vehicle spare parts business plan, then you can take help from the document here. Also, if you are having difficulty conducting a marketing analysis, you can look at the marketing plan of this business plan motor parts shop.

5.1 Market Trends

According to IBISWorld, the auto parts industry holds a market size of $66 Billion in the United States, employing almost 400 thousand people. The industry is continuously in demand as more and more people adopt automotive vehicles in their life. So, opening a business in this industry is a very smart move as the demand will only get bigger.

5.2 Marketing Segmentation

The potential customers of Best Rev will be as follows:

Auto Parts Store - Marketing Segmentation

5.2.1 Personal Vehicle Owners

The primary customers of Best Rev will be people who own cars for personal use. As a majority of the population of Manhattan owns cars, our business will expect these customers to be quite regular. They are expected to avail maintenance and cleaning services most often.

5.2.2 Private Dealerships

Our second target customer will be private dealerships looking to fix up cars and sell them. We will provide them with the spare parts and maintenance services required.

5.2.3 Cargo Vehicle Businesses

Due to the vast amounts of construction being carried out in Manhattan and surrounding areas, we expect our third most frequent customers to be cargo vehicle businesses looking for spare parts, maintenance, and cleaning services.

5.2.4 Professional Racers

Our final customer group will be professional racers. They are expected to avail our spare parts and maintenance services, although not that often.

5.4 Product Pricing

Our prices will be economical compared to our competitors since they won’t pay extra shipping fees for spare parts.

Marketing Strategy

To gain attention in the market among your competitors, you need to highlight your competitive advantages. This is crucial in developing a business, especially an online auto parts business.

You can market what makes you unique in the industry through a solid marketing plan. A market plan will not only allow you to bring light to your strongest features, but it will also help you in learning how to become an auto parts distributor in a saturated market.

So, if you want to develop a strong marketing strategy for your business, you can take help from this motor parts business plan pdf. You can also look at other business plans such as skateboard store business plan to understand how to build a marketing strategy.

Personnel plan

There are a lot of auto parts stores in the world. But only those are popular that make customers happy and satisfied. The success of a business, especially in the automobile industry, depends not only on the quality of parts but also on the customer support staff.

Understanding this importance, Sheldon included some essential features as a part of employee hiring criteria in the automobile spare parts business plan. He also formed a list of employees necessary for running his business. This list can be seen in this auto parts store business plan sample.

7.2 Average Salary of Employees

Financial plan.

You can’t ensure the success of an automobile parts business through just sales. You need to ensure that all the resources are efficiently managed so that your business doesn’t go into a loss.

You can prevent your business from losing resources by developing a financial plan as a part of your motor spare parts business plan. This will include the costs associated with your business’s essential aspects, such as an auto parts franchise cost. In addition, it will analyze where you are spending your money and how you are earning to keep everything in balance.

Here, we are describing the details of the financial plan of Best Rev.

You can also look at a business plan for e-commerce to get a good idea of managing business finances.

8.5 Projected Balance Sheet

8.6 business ratios.

1. How to start an auto parts store?

You can start an auto parts store by developing a good auto parts store business plan.

2. How to open an auto parts store?

For starting an auto parts store, you will need to rent or buy a physical space and create management plans.

3. How to start an online auto parts business?

To start an online auto parts business, you will need to manage your business finances and develop a strong marketing plan. Furthermore, you will need to establish social media presence as well.

Download Auto Parts Store Business Plan Sample in pdf

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Very in-depth proposal sample

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How to Start an Auto Salvage Yard Business

If you love cars and tinkering an auto junkyard might be the best business for you to start. The auto salvage yard business are not quite as popular as the used to be. While they do promote recycling and sustainability, they can be hard to turn a profit and they require some good inventory and real estate. With popular shows like Rust Valley Explorers more car enthusiasts have been interested in what it takes to open an auto junk yard business. While I have never done this myself, I have visited and spoke with many salvage yard owners and did extensive research on what it takes.

So what does it take to start an auto salvage yard business?…first let’s establish the basics of what the business does.

Basic Auto Salvage Yard – How it Operates…

Auto salvage yards deal in decommissioned vehicles from individuals, insurance companies, businesses, and government entities. The salvage yard is kind of like a temporary storage facility that holds the vehicle before it is scrapped. The general idea is that a vehicle has it’s parts stripped and sold and once it is extracted of all it’s value, what remains gets sold for scrap metal.

Now that we have established a baseline of what this business is, let’s see if it is the right fit for you…

How to Start an Auto Salvage Business

First you need a plan….

Without getting caught up in the “How to Start a Business” legal part of it , we are going to focus on the basics. If you were considering starting an auto salvage what do you need to consider. How would you plan that out? Well just like any other business by answering some basic questions:

As an entrepreneur having a clear plan is essential to setting up this style of business. Some of these questions will be easy answer and others you may be searching for answers along the way.

I have started answering many of these for you to help you plan this out and get your brain thinking…

What are the Costs of Starting an Auto Salvage Yard Business?

After talking to many salvage yard owners, you may be surprised to find out many started with very minimal start up capital.

Property is The Biggest Challenge…

The most expense part is getting a few acres of land. There is a catch though…not just any plot land will do. A salvage yard is a business and needs to be on land that is commercially zoned . One more catch your land must be Environmental Protection Agency (EPA) approved as well. You can’t have a junkyard without EPA approval.

Why the EPA approval is Needed for Property:

Auto salvages have to work with hazardous materials and they need to to know how you could potentially pollute the ground water, soil, and local eco system.

After Property…

When your land is established in a commercially zoned area, there are certain expenses you will need. Some states will actual require some of these items below:

Costs of Initial Inventory

Getting your inventory together is the next step. Some of the best auto yard owners say they only spent $2,500 on start-up inventory. You can try finding vehicles on Craigslist, Ebay or other salvages. The best place in my opinion is salvage auctions, where you can try and bid on “lots” of vehicles. Here is where you can find good repo and police auctions .

What are the Recurring Costs?

Without question your largest costs will be around the salvaging process. Purchasing decommissioned vehicles, disassembling them, recycling liquids, and all the labor associated with those tasks. Other recurring costs will be taxes, insurance (which you need plenty of), marketing expenses, and other general administrative costs for office work.

Who is the Target Customer?

Your target customer is anyone who is looking for cheap auto parts as an alternative to fix their vehicle. For this you really need to conduct market research and it will vary based on the area you are in. There are many opportunities for marketing to mechanics, construction companies, used car dealerships, as well as the local community.

How Does an Auto Salvage Yard Business Make Money?

An auto salvage works like a buyer and a reseller. The idea is to buy a decommissioned for cheap and then sell off the parts in pieces for a profit. A successful auto salvage owner MUST be able to properly assess the value of a junked vehicle . Knowing things like how much the vehicle is worth in scrap metal and what specific parts sell for on the second hand market will serve you well. If you can not assess a junked car for it’s potential value, it will be hard to turn a profit. It is critical to get vehicles for the lowest possible cost because you need to cover your overhead like facility and labor costs.

One thing some salvos do really well is flip cars. They bring in a car with a salvage title, fix it up, and then sell it with a rebuilt title or sell it auction. Some of vehicles that insurance companies deem as totaled are not beyond repair. This creates a great opportunity for profit. It is a key factor in determining how much money a junkyard makes .

How Much Can You Sell Parts For?

You certainly can’t sell parts for the same price as new parts. Typically used auto parts go for well below the cost of new. You can look here to see how some auto parts places near me charge . Prices will vary be region, condition, and of course demand. When you figure out what to charge, you need to consider your operating expenses in your decision.

If you run a specialized junkyard, like one that specializes in Jeeps or farm equipment, you may be able to increase prices as you serve a particular niche audience.

How Profitable are Automobile Salvages?

This is hard to estimate being that size of yards vary and location and region impact profitability. Folks I have spoken with have told me anywhere from a few thousand dollars a month profit for a small yard to six figures for a large one.

Thinking Outside the Yard…How to Increase Profits

The most successful yards do two things: They have a website with their inventory and they sell parts online. Now even if you don’t have a website you can sell parts on eBay Motors. Other best practices are knowing how to get paid for things other then parts. For example the most successful yards sell the vehicles for scrap metal once they are stripped off parts. They may even strip non-ferrous metals, like lead, copper, aluminum, and brass and sell those metals.

One of the best tips I was given was that a savvy salvage yard holds their scrap metal and watches the market. They store metals and watch the daily prices and wait until they can get the best profit for their metals. If the prices are low, they stockpile, but if high they unload it all.

Other Advice for Starting an Automobile Salvage

Hire gearheads.

In the beginning it may be ok for you to be the mechanic, administrator, yard organizer, etc…but to scale you need people. Find people who know about cars, even if they don’t how to dismantle one. It saves you the explaining of how to organize parts and it will be better for your customers.

Develop Your Parts Organization Structure Early

When parts start accumulating it can get out of hand quickly. Decide right from the beginning how you will organize your parts and stick to it. So many yards are poorly run because they don’t follow a system. Ideally you want a system in place that makes it easy to label and store parts for fast picking later. The best run yards use a computer system to tag, label, and log their parts.

Establish Partnerships With Companies That Purchase Scrap

Having relationships with scrap yard buyers will help you move scrap metal faster when you have too much on hand. You don’t want to wait until you have to sell scrap metal to then go and find a buyer. Establishing an exclusive partnership for a certain supply could also yield you a higher return.

Crush Your Own Cars

When a car is stripped down to the frame it needs to be crushed. By crushing the cars yourself and stacking them you can make more room on your lot for new inventory. These machines can be really expensive, but you can always buy one used to start out. You may also want to consider a crane so you can move the cars around a lot easier.

Start an Auto Salvage Yard Business – Final Thoughts

Starting an auto salvage can be pretty daunting. There is alot that goes into starting it from the ground up. The other option you may consider is buying a yard that is for sale. This way you start with property, inventory, assets, a garage, etc.

Important Pages

Home » Business ideas » Automotive Industry » Auto Parts Store

Auto Spare Parts Shop Business Plan [Sample Template for 2023]

Are you about starting an auto spare parts shop? If YES, here is a complete sample auto spare parts shop business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting an auto spare parts shop. We also took it further by analyzing and drafting a sample auto spare parts shop marketing plan template backed up by actionable guerrilla marketing ideas for auto spare parts shops. So let’s proceed to the business planning section .

For as long as people still use automobile on our roads, the need for auto spare parts will continue to be in high demand. Auto spare parts business is no doubt a profitable business because the replacement of damaged or worn – out auto parts is compulsory if you want your vehicle to continue to be on the road and serve the purpose you bought it for.

If you are in search for a business to start as an entrepreneur and you know you have a penchant for the automobile industry, then you should consider starting your own auto spare parts sale business.

Even though you don’t need a college degree to establish your own auto spare parts store, but you would need some form of informal training, you might have to work as an apprentice with someone who owns an auto spare parts store. It makes it easier for you to learn the ropes and how to manage your own auto spare parts stores.

It is important to point out that auto spare parts business is one of the businesses that can’t go out of fashion and this is simply because of the role it plays in the auto industry. Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate.

As a matter of fact, you can start your own auto spare parts store and then grow it big within a short period of time by reinvesting your profits back to the business. Here below is a sample auto spare parts stores business plan template that will help you successfully write yours with little or no stress;

A Sample Auto Spare Parts Shop Business Plan Template

Table of Content

1. Industry Overview

3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, our competitive advantage, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.

The auto parts stores industry includes stores / shops that retail new and used automotive parts and accessories, repair automobiles and install automotive accessories.

Players in this industry can choose to operate a single store in just one location or chains of stores in several locations scattered all across the united states of America. As a matter of fact, auto stores can be found in all parts of the world as long as there are automobiles there.

IBIS World projected that the Auto Parts Stores industry is expected to grow slowly over the five years to 2016. They stated that per capita disposable income and corporate profit boosted the demand for auto parts. Furthermore, favorable car usage trends have led to growth in demand for industry products in the short term.

Nevertheless, advancements in motor vehicle technology have made it increasingly difficult for vehicle owners to repair and maintain vehicles without professional help. Going forward, the revenue generated by operators in the industry is expected to grow at the same pace as the previous period.

As the national level of per capita disposable income continues to rise, some consumers will increase their spending on maintaining and fixing their automobile hence the increase in demand for products and services from the Auto Stores industry

The Auto Parts Stores Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics has it that in the United States of America alone, there are about 43,136 registered and licensed auto spare parts stores scattered all across the United States responsible for directly employing about 376,102 people and the industry rakes in a whooping sum of $56 billion annually.

The industry is projected to grow at 1.9 percent annual growth within 2011 and 2016. It is important to state that Advance Auto Parts, AutoZone Inc., Genuine Parts Company, and O’Reilly Automotive Inc. have the largest chunk of the available market share in the industry.

A close observation of the Auto Parts Stores industry shows that the industry has low barriers to entry. In the United States, the industry is subject to few restrictive regulations, and industry employees typically do not need to be trained formally to be able to carry out their duties.

The truth is that, the start – up capital for opening an auto parts stores especially when it involves establishing a standard auto parts stores with products from various automobile companies. But if you choose to start a spare part store like the average mom and pop business, then you would not have to stress yourself because you will only need minimal start – up capital to launch the business.

The tough part as it relates to start-up costs most likely are the need to establish a supply of auto parts from wholesalers or directly from auto parts manufacturing companies.

This is so because an auto parts business cannot be started without sourcing products for sale. Regardless of low barriers to entry, the competitive nature of the industry make it very difficult for new operators to break even within a short period of time in the industry.

Lastly, the auto spare parts industry is pretty much open for aspiring entrepreneurs to launch their business in the industry. One good thing about auto spare parts stores business is that the business can be opened in any part of the United States and if proper market survey and feasibility studies are conducted, then you can rule out profitability of the business.

2. Executive Summary

Freeway Auto Parts Stores is a standard and registered auto spares parts retail store business that will be located in one of the busiest streets in Charleston – South Carolina.

We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard auto spare parts retail store that we intend launching and the facility is located around the largest residential estate in Charleston – South Carolina.

Freeway Auto Parts Stores will be involved in selling automotive parts and accessories, distributing automotive parts from different manufacturers (brands) from the United States and abroad and repairing automobiles. We are set to services a wide range of clientele in and around Charleston – South Carolina.

We are aware that there are several large and small chains of auto spare parts retail store outlets all around Charleston – South Carolina, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our outlet is well secured with various payments of options. Freeway Auto Parts Stores will ensure that all her customers are given first class treatment whenever they visit our auto parts retail store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.

We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions. Freeways Auto Parts Stores will at all-time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers ‘needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Freeway Auto Parts Stores®, LLC is a family business that is owned by Jerry Herbert Godsons and his immediate family members.

Herbert Godsons has a B.Sc. in Business Administration, with well over 5 years of experience in the Auto Parts Stores industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Charleston – South Carolina, but there is a plan to open other outlets all around major cities in the United States and Canada.

Freeway Auto Parts Stores is in the auto parts stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of auto parts from top manufacturing brands in the United States and other countries of the world.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product and services offerings are listed below;

Our Business Structure

Freeway Auto Parts Stores does not intend to start an auto parts retail store business like the usual mom and pop business around the street corner; our intention of starting an auto parts retail store business is to build a standard and one stop auto parts retail store outlet in Charleston – South Carolina.

Although our auto parts retail store business might not be as big as Advance Auto Parts, AutoZone Inc., Genuine Parts Company, and O’Reilly Automotive Inc et al, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

Merchandize Manager

Sales and Marketing Manager

Information Technologist

Chief Executive Officer – CEO:

Admin and HR Manager

Store Manager:

Accountant / Cashier:

Client Service Executive

Our intention of starting just one outlet of our auto parts retail store in Charleston – South Carolina is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in South Carolina and key cities in the United States and Canada.

We are quite aware that there are several auto parts retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Freeway Auto Parts Stores®, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Freeway Auto Parts Stores®, LLC;

Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of auto parts from different manufacturing brands both from the United States and abroad and our excellent customer service culture will definitely count as a strong strength for Freeway Auto Parts Stores®, LLC. So also, our team of highly qualify staff members is also a plus for the business.

A major weakness that may count against us is the fact that we are a new auto parts retail store outlet in Charleston – South Carolina and we don’t have the financial capacity to compete with multi – million dollars’ auto parts retail store outlets like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co when it comes to retailing at a rock bottom prices for all their auto parts.

Opportunities:

The fact that we are going to be operating our auto parts retail store close to one of the largest residential estates in Charleston – South Carolina provides us with unlimited opportunities to sell our auto parts to a large number of individuals, auto repair, services and maintenance garages and transport companies.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our auto parts store outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we may face is economic downturn. It is a reality that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto parts retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

Market Trends

If you are conversant with the Auto Parts Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever changing trends are major growth drivers for sales in this industry. No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the industry.

So also, the rising demand for parts manufactured by a third-party manufacturing company, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as auto retail stores keep prices low to attract more sales amid growing competition.

Lastly, in recent time, the auto parts retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical auto parts retail store is located.

Perhaps it will be safe to submit that the auto parts retail stores industry has one of the largest ranges of customers; almost every automobile owner would have one reason or the other to purchase automobile parts and accessories.

In view of that, we have positioned our auto parts retail store to service the residence of Charleston – South Carolina and every other location where franchise cum outlets of our auto parts retail stores will be located all over key cities in the United States of America and Canada.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of auto parts to the following groups of people and corporate organizations;

A close study of the auto parts retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other leading auto parts retail stores in Charleston – South Carolina and throughout the United States and Canada.

Freeway Auto Parts Stores®, LLC is launching a standard one stop auto parts retail store that will indeed become the preferred choice of residence / automobile owners of Charleston – South Carolina and every other location where our outlets will be opened.

Our auto parts retail store is located close to the largest residential estate in Charleston – South Carolina We have enough parking spaces that can accommodate well over 30 cars per time.

One thing is certain; we will ensure that we have a wide range of auto parts from leading auto parts manufacturers available in our store at all times. It will be difficult for customers to visit our auto parts retail store and not see the type of auto parts and accessories they are looking for.

One of our business goals is to make Freeway Auto Parts Stores®, LLC a one stop auto parts retail shop for automobile owners, auto repair, maintenance and servicing garages and transport companies. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups auto parts retail stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

Sources of Income

Freeway Auto Parts Stores®, LLC is in business to retail a wide range of auto parts to the residence of Charleston – South Carolina. We are in the auto parts retail stores industry to

One thing is certain when it comes to auto parts retail stores, if your store is well stocked with various types of auto parts and accessories and your store is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Charleston – South Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the auto parts retail stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Charleston – South Carolina.

Below are the sales projections for Freeway Auto Parts Stores®, LLC it is based on the location of our business and other factors as it relates to auto parts retail stores start – ups in the United States;

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same sporting goods brands and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location for Freeway Auto Parts Stores®, LLC we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Charleston – South Carolina.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the auto parts retail stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Charleston – South Carolina.

In other to continue to be in business and grow, we must continue to sell the auto parts and accessories that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Freeway Auto Parts Stores®, LLC will adopt the following sales and marketing approach to win customers over;

Despite the fact that our auto parts retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our auto parts retail store.

Freeway Auto Parts Stores®, LLC has a long-term plan of opening outlets in various locations all around South Carolina and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Freeway Auto Parts Stores;

Aside from quality, pricing is one of the key factors that gives leverage to auto parts retail stores, it is normal for consumers to go to places (auto parts retail outlets) where they can get auto parts and accessories at cheaper prices which is why big player in the auto parts stores industry like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc. and co but we will ensure that the prices and quality of all the auto parts and accessories that are available in our store are competitive with what is obtainable amongst auto parts stores within our level.

Payment Options

The payment policy adopted by Freeway Auto Parts Store is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Freeway Auto Parts Stores®, LLC will make available to her clients;

In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of auto parts and accessories without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products and services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an auto parts retail store business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital on;

We would need an estimate of five hundred thousand dollars ( $500,000 ) to successfully set up our auto parts retail store in Charleston – South Carolina. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Freeway Auto Parts Stores®, LLC

Freeway Auto Parts Stores®, LLC is a private registered business that is solely owned and financed by Herbert Godsons and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Freeway Auto Parts Stores®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality auto parts and accessories a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Freeway Auto Parts Stores®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

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Auto Parts Store Business Plan

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Southeast Racing

Strategy and implementation summary.

Our strategy is based on serving the niche of entry-level racers well. This area is full of small race teams that can’t get products or services from the major vendors who focus only on professional race teams. Also:

5.1 Marketing Strategy

The retail marketing strategy of Southeast Racing Parts centers on creating a corporate identity that clearly defines our market niche in terms that benefit our customer. Other specific strategies that will be used follow:

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful considerations of returns generated.

5.1.1 Promotion Strategy

Our most important vehicle for sales promotion will be our catalog, which is discussed earlier in this plan.

5.1.2 Distribution Strategy

Our customers will buy our products at our location. However, we anticipate a significant amount of mail order sales in order to meet or exceed our Sales Forecast. We will receive orders by mail, phone, or fax, process them immediately, and ship the goods via United Parcel Service.

In the event we are out of an item or we don’t stock it, many of our vendors have offered drop shipping as a service to us. This will allow us to keep our service at a high level, yet let us keep our inventory levels in check.

In the future, electronic commerce with a secure website will be thoroughly investigated for feasibility.

5.1.3 Pricing Strategy

Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be a good value to the racers. However, in the nearly thirty years of experience that we have accumulated in the racing industry, one message rings true: someone can always beat you on price.

Therefore, our pricing strategy is to be competitive within the various product categories, but not to rely on the selling price to overshadow the other advantages of doing business with our company. We will sell ourselves on the basis of a diverse line of quality products, that are readily available, reasonably priced, and backed up by our extraordinary customer service. The products will be checked prior to shipment and all promised shipping dates will be met.

We will strive for a modest gross profit margin, increasing that steadily by year four.

5.2 Sales Strategy

Because Southeast Racing Parts is a new entity, we understand that we will have to prove our company’s worth to racers in order to earn their respect and business.

Most importantly, we need to sell our company, not necessarily the products. We will need to push our service and support capabilities.

5.2.1 Sales Forecast

The following table and related charts show our present sales forecast. We are projecting sales to grow at steadily for the next three years.

Our seasonality, as shown in the chart, is a factor in the racing industry. We will tend to sell much better in the period January through June, while sales trail off in late summer and fall.

Management feels these forecasts are highly attainable.

When Performance Racing Industry completed its annual survey, the resulting figure for total number of racers was 385,000. Within the survey they also found that 150,000 of those were oval track racers. The survey also showed $1.5 billion in annual retail sales for all segments, with 48% of that total ($720 million) derived from the oval track segment.

By dividing that number ($720 million) by the number of oval track racers (150,000), the average annual retail purchases of oval track racers equals $4,800. From our past experience, we believe that each customer we have would spend on average 25% of that figure ($1,200) with our company. Finally, by dividing our first year sales forecast ($350,000) by $1,200 (average annual customer purchases), it shows that we will need 292 customers to support the sales forecast numbers. We believe, by and large, that these are realistic and attainable numbers.

Auto parts store business plan, strategy and implementation summary chart image

5.3 Strategic Alliances

We have the ability to build strong strategic alliances with many of our suppliers, some of which are listed below.

The following two local warehouses will help us immensely in keeping our own inventory levels in check, while still giving our customers fast service:

(omitted to protect confidentiality).

Approached properly, these vendors and many others will assist Southeast Racing Parts in becoming a force in the marketplace.

5.4 Milestones

Sample Milestones topic text.

The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.

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How at Initiate a Used Machine Parts Business

by Leonardo R. Grabkowski

Published on 26 Sep 2017

Selling used auto parts can be a financial rewarding commercial opportunity. Search yards sell used auto parts by accumulating vehicles for storage and removing the workings parts. You will most chances necessity a tow truck to start your commercial, along with secured storage for the used cars.

Acquire a liegenschaften either due lease otherwise acquisition. For an used auto part business, the property must have sufficient land fork you the retail vehicles. Ideal locations will have a small office with ampere large land territory behind or on it. One location will need adenine security fence; if you are unable to find one through a safety fence, you may have to have one constructed on the feature. Southeast Racing automatic accessories store business plan executive summary. ... Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racer parts ...

Apply to the local services of motor vehicles to get a dealer bewilligung. Used automotive parts dealers must have a special license include most states, related to the license a automotive trader would have. At this time, you should also apply for a general business license and tax labeling number at your local revenue office. How to Start a Exploited Auto Parts Business | Bizfluent

Acquire a tow truck. Most used self parts dealers take their own tow trucks; if you will unable to acquire one, this business model may be difficult. Most of is inventory will come purchasing broken down rolling and having them towed to your location.

Set raise your business office. You will need general retail and department rations such the computers, fax machines and an cash register. A is also recommend to purchase take software the help keep track of the parts they have come also going. At diese time, you need set up a token on the exterior of your business that highlights basic news, including your business name and telephone number. Before opening a motorcycle parts business, scope out will competition and got ready to make decisions. Since the plain calls, such as whether autochthonous business will retail new or used parts, at major unity, like how in finance your enterprise, is prepared to capture your part of the market.

Stepping 5.

Set up contracts database with other used auto parts dealers. To is the lattice ensure permit used auto parts dealers the ability to get used divided group do not have to inventory. You ca also sort choose available parts driven the service. Having this service is crucial; you risk loser business if you cannot secure a part for a customer (see Resources).

Beginning collecting vehicles for storage. The vehicles you collect will supply thy business by the majority of your used cars parts. It is referred for run advertisements that propose to buy "junk" car alternatively others such people may want to get ride of. Offer a small cash payment for the vehicles and freely haul-off. Auto Portions Store Economy Plan - Bplans

To big an nation area of the location, the more wheel yourself are able for store. The recommended size will depend on the volume of vehicles she want till save. It has important to not choose a location too minor. Export Motorcar Parts Business Plan - Market Analysis Chapter - Bplans

When aggregation vehicles, items shall von utmost importance to gain the title to them. Make sure the person you are buying the vehicle from is the owner or has a clear title.

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Use Auto Sales Business Plan

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Honesty Auto Sales

Executive summary executive summary the a brief introduction to your business flat. it describes your business, the problem that it solves, your target market, and financial highlights.">, auto sales & parts.

There will an need in Lane County for a large selection of quality used cars, and Probity Self Sales is sell these top-quality used vehicles at a competitive price. The owner and sales manager have via 30 years of combined experience in new and used auto sales. Ourselves will continue to develop our excellent employed relationship with local dealers and auctions to bring an savings to and customer. Hey #entrepreneurs: discover our tips for opening a car #scrapyard with reading this article. #businessowners #startingabusiness

Were will create one purchasing environment that caters to the customer’s needs. We are selling a professional service plus an experience into car bought that will bring my back again, as well as referring friends and family. We estimate an optimistic gross periphery over the industry average. We will be successful because the the excellent group we have customized and the drive and determination of the owners. Late Model Motor Parts - Rescue and Utilised Motorcar Parts Dealer

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to this recent past of the new your markts, thither is an large inventory of used carriages available for re-sale. New car sales have enjoyed the largest unique month gain in October upside 24%.

Competition

Used automotive dealers is notorious for unethical sales practices. Customers will inheritance cautious and untrusting as a ergebniss. The more we can provide a high-quality sales experience, the see successful we will be. Our salesmen will make an pleasant and personal experience for the buyer. We will follow up and ensure customer satisfaction. We will rely off these customers with an excellent reference to additional car buyers. Get company will build an excellent working relationship with our suppliers and customers. Starting a used auto parts business can be an excellent way into manufacture money and impede older car parts ending up in landfills. The addition to helping the environment, you canned assist population who does furnish brand-new car parts to keep their...

Integrity Auto Distribution provides a unique machine buying experience to who customers in the Willamette Valley. One that focuses on customer satisfactions first. We understand that vehicle purchasing is a necessary, but sometimes unpleasant experience. Our goal is to provide the our with to enjoyable, honest service by satisfying individual customers practical transportation needs with a quality product. Used Auto Sales Business Plan - Bplans

Are also believe it is important toward possess premium vehicles for a low cost, and will back each truck with a 30 day limited warranty. Our businesses will take a profit by originating sales. It will supply job satisfication and fair compensation to its workers, and a fair return the its owners. Hard work press performance is rewarded through prizes real commissions. Job satisfaction is very important for employees and owners, we will create a work environment which is enjoyable furthermore profitable for all.

Financial Highlights with Years

Financing needed.

We need $130,000 funding to start. That includes a $100,000 loan. Jonathan desire invest $20,000 and Don will invest $10,000.

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Starting Auto Spare Parts Store Business Plan (PDF)

At least 18 percent of the global population own at least one vehicle. That translates to over 1.4 billion vehicles in the world. That is a staggering number of vehicles and the figure keeps growing. Vehicles constitute several electrical and mechanical aspects. That is why they are always likely to malfunction or get worn out over time. The average vehicle has approximately 30 000 parts. If we are to look at substantially big parts or components, that is roughly 1800 parts. Vehicle ownership has been on the rise and will continue to be; even multiple vehicle ownership. The other notable dynamic is that vehicle owners are generally now keeping their vehicles for longer. As such that increases the likelihood of them needing auto spare parts at some point. That clearly shows you there is money to be made in starting an auto spare parts store business. Despite whatever the state of the economy might be in, the demand for auto spare parts will always be high. This article will outline how to start the auto spare parts store business, and the auto spare parts business plan – PDF, Word and Excel.

Market Research

The need to gather comprehensive up-to-date data.

Market research for auto spare parts business is basically 3-tier i.e. market identification, product research, and consumer research. You can conduct market research by conducting surveys, observations, interviews, and desk research. Desk research involves gathering and analysing information from print and electronic media. The reason why you must conduct market research for motor spares business is to figure out whether or not a market exists. Then if it does you would want to comprehensively know all its characteristics.

Several Variables To Consider

There are numerous different types of vehicles, brands, and makes. The most populated segment is light motor vehicles. However, that might not hold true everywhere. Thus you have to zone in on your intended target market and know its characteristics. All these are examples of variables that call upon you to conduct market research. What are the most sought after auto spare parts and for which types of vehicles?

Figuring Out The Roll Out Plan

You also have to gather enough information to know how to roll out your auto spare parts store business. Do you have to operate from a physical outlet? Should that physical outlet exclusively just focus on auto spare parts? Do you have to marry the auto spare parts element with an already existing business e.g. a fuel station, a garage, or workshop?

Maybe it could be best to consider franchising. How about rolling out the motor spares business exclusively using an online store approach? You have to know where you will score as many customers as possible. Making a decision out of all those options can only be accurate if your market research is thorough.

Make sure you have a comprehensive auto spare parts business plan

The failure to plan is the beginning of business failure. The auto parts business plan must be clear and succinct enough to give your potential partners, clients and investors an overview of what your objectives are. At the same time, it must be detailed enough to explain your business well. Your motor spares business plan should have financial statements which show that your business is viable and profitable.

Location And Premises for an Auto Parts Store

Your choice of location is of critical importance with respect to customer inflows. An appropriate location must take into account places where there are good road networks and high vehicle traffic. Your choice must also be done after being absolutely sure that your target area has people with substantial income levels. It would also be wise to scout your intended location and see whether or not there are other players active in the same trade. Once you get comprehensive details on that it’ll help you setup shop in a way that wards off competition.

As can be noticed from some central business districts, such stores can be located in streets lined up with auto spare parts shops. That can be strategic in that you get easily located due to people’s knowledge of the street. However, considering that you’ll be close to your competitors you’ll have to be very competitive. Deciding to locate yourself as a standalone shop can be expedient but do your homework to ensure customer inflows will be easy to mobilize. In general, the best location is in a central business district, shopping centres, or near places or residential areas that have high vehicle populations. The store must be sufficiently spacious with spare parts stacked neatly on clearly labelled rakes or sections. There must also be ample and secure parking space with even a loading bay where applicable. The auto spare parts store business plan should cater for the costs of purchasing or leasing the premises.

Competitive Analysis

Your auto spare parts store business cannot operate in a vacuum. There are competitors and you must study them closely. What are their business offerings? What is the nature of their customers and where are they from? Generally how are they running their auto spare parts store businesses? You are looking at all these and more to find out loopholes or gaps. The auto spare parts store business is extremely competitive. Your success can only be borne out of having superior differentiators. It will take conducting an in-depth competitive analysis to figure them out. The auto spare parts store business is highly segmented. Most players are not diligent enough in studying and finding out the finer details of their intended target markets. Take time to dig into that and you will discover how to set apart your auto spare parts store business.

Permits/Licenses, Insurance & Business Bank Account

Your business entity i.e. your auto spare parts business must be registered first and foremost. If you are going to be operating using a physical auto spares store, a store license will be needed. The requirements vary depending on your specific location. Mostly you can seek guidance on that from the local authorities of your respective location. There may be special permits or licenses that may be required depending on the nature of your services. It is possible that you might be dealing with auto spare parts, substances, machinery, or processes that require special licensing.

It could also be that some of your personnel may be required to be licensed for their respective trades. You have to see to it that you are not found wanting by operating without proper permits or licensing. Insurance is a no-brainer in running an auto spare parts business. There is an array of possible risks which need to be covered by insurance. As always it is smart to separate yourself from your business in terms of financial management. That is why you must open a business bank account solely for your auto spare parts store business. The costs of insurances and licenses must be included in your motor spares business plan.

Auto Spare Parts Products

Your product range will be hugely based on your targeted market. There auto spare parts market is huge and there several niches which your auto parts business can target. Your motor spares parts can specialize with selling auto parts for only one vehicle make eg Mercedes-Benz, Audi etc. Specialisation can also be according to product lines, eg gearboxes, suspension parts, engines, cooling systems, braking system, tyres etc. Focus can also be made to sell quick replacement auto spare parts eg brake pads, brake shoes, high pressure pumps, filters etc. Other auto spare parts stores act like one-stop stores which sell a variety of products without specialising in anything.

The types of auto spare parts products you can sell are many and diverse. Some of them are bumpers, radiators, filters, batteries, plugs, fenders, ball joints, shock absorbers, body parts, bearings, plugs, lamps and lights (i.e. headlamps, corner lamps, tail lights and so on), sensors, rims, grills, lubricants, amongst others. It’s important to source your stock from reputable suppliers and at favourable prices so as to subsequently price them competitively at a profit. Your auto parts store business plan should obviously cater for the costs of purchasing the products which your store will be selling. You can source your auto spare parts from local and international suppliers.

Inventory Management

For the auto spare parts store business this is best done using a digital solution. There is countless inventory management software you can purchase or be licensed to use. The ideal one should allow you to manage inventory, manage orders, manage bills, manage customer accounts, and more. This should all be doable from a centralized system that provides accurate real-time data.

Staff And Management

This will be depend on the size or scale of your auto parts business operations. At the minimum you need cashiers and store attendants. I can’t overemphasise the importance of having staff that’s well acquainted with auto spare parts and the technical details thereof. Hiring either qualified personnel with the necessary expertise or employees wielding a comprehensive background regarding vehicle repairs and maintenance will be strategic. The staff must also be passionate about engaging with customers, and be good at offering quality customer service and care. Size of management also depends on the size of the business, for small auto spare store businesses, this can just be the business owner. The salaries of all the staff should be budgeted for in the auto spare parts business plan.

Market for Auto Spare Parts Store Business

The market for auto spare parts products is huge due to the high number of cars. The customer base for auto spare parts products include transport companies, organisations, individuals, mechanics and auto repair companies, companies, insurance companies, garages, panel beating and spray painting companies etc. You have to build a loyal customer base so as to get repeat customers. This can be achieved by offering high quality products at competitive prices. Good customer service is also key to winning the heart of customers. Due to the competition from other players, your auto spare parts business should carry out advertising campaigns to make more people aware of its existence. Your auto spare parts store business plan should include a proper marketing strategy to help you boost sales.

Marketing Plan

First things first – press release & official launch.

When starting an auto spare parts store you must do a proper press release. A press release is one of the most tried and tested means to market your business. Marry that with doing a notable official launch of the store.

Digital Marketing Must Be Central

The core of your marketing initiatives, moving on, should be premised on digital marketing. Put up active social media accounts for the auto spare parts store business. One of the trending ways nowadays is to conduct online contests on social media. Your contests must incorporate the use of hashtags and rewarding the highest engagements.

Involving social media influencers can enhance the efficacy of your digital marketing efforts. Though of course you can and must still place ads in print and other electronic media. For example, you can place ads to be aired on radio or TV. Hand out fliers or put up banners, posters, or billboards.

Participation In Strategic Events & Initiatives

Additionally, you must always be on the lookout for strategic events to attend. These can be trade shows, car shows, racing events, expos, and the like. Participate in community development programs to increase visibility of your auto spare parts store business.

Pre-Written Auto Spare Parts Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the auto spare parts store business, we encourage you to purchase our well-researched and comprehensive auto spare parts store business plan. We introduced the business plans after discovering that many were venturing into the auto parts business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global auto spare parts business plan will make it easier for you to launch and run your auto spares business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the auto parts business.

Uses of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The auto spares store business plan can be used for many purposes including:

Contents of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The auto parts business plan include, but not limited to:

The auto spare parts business plan package consists of 4 files

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change.

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How to Start an Auto Salvage Business

by David Weedmark

Published on 19 Feb 2020

A junk car may be worthless to a driver, but for someone who knows how to dismantle it, the parts and metal it contains can be worth a small fortune. Starting an auto-salvage business isn't for everyone, and there are a few hurdles to get through for a license, but for those who don't mind getting their hands dirty, it can be a profitable business.

Starting a Salvage-Yard Business

When you picture a salvage yard, you likely envision hundreds of cars stacked in piles in a yard with a crane and a car compactor. This would be the case if you're able to find a junkyard business for sale , which should come with the equipment and contacts in the auto industry that you will need for sourcing salvage cars and for clients needing parts.

If you're not buying an existing business, you will need to start making those connections yourself, beginning with local repair shops. You will also need to have a place for storing vehicles and parts. This doesn't have to necessarily be a 10-acre salvage yard. You can start off much smaller as a scavenger by buying one old car at a time using your own driveway or garage if local zoning laws don't prohibit such work.

State Salvage-Yard Requirements

State requirements for a salvage business vary widely, so it's important that you research the requirements in your state. In California, you need to apply for a vehicle dismantler license from the DMV. Among other requirements, you will need to be fingerprinted, submit to a criminal background check and prepare for a physical inspection of your facilities.

The Wisconsin Department of Transportation issues four types of licenses depending on your facilities and the type of salvage operations you perform:

Type One: Vehicle-salvage dealership that dismantles vehicles and sells parts, with facilities that include an office and a yard
Type Two: Vehicle-salvage dealership that dismantles vehicles and sells parts within a building only
Type Three: Scrap-metal recycler or processor that does not dismantle vehicles or sell parts, operating from a building without a yard
Type Four (scavenger license): Business that buys vehicles and then transports them to a licensed salvage yard or recycler, with facilities that include an office and a place to park vehicles before transporting them

To qualify for a license in Wisconsin, you will need:

Proof of an established place of business that complies with local zoning and permit requirements
A financial statement showing a net worth of at least $5,000 or a $25,000 surety bond
A state sales tax permit if you're applying for a type one or type two license.
A sign with your salvage dealer license number on any vehicle used to transport salvage vehicles
A business sign with posted hours of operation
Proof that you are in compliance with environmental regulations

Zoning and Environmental Regulations for Salvage Operations

The Environmental Protection Agency and state and local governments will require that you conform with their requirements before you can get your salvage business license. Zoning requirements will likely limit where you are able to store salvage vehicles. If you are storing vehicles in a yard, you will need to construct a fence and post signs.

Of particular importance will be getting a stormwater discharge permit . Dismantling vehicles and storing the resulting parts involves possible leaks of oil, grease, ethylene glycol and heavy metals like mercury. These substances come from batteries, chrome bumpers, tires and rims, filters, radiators, catalytic converters, engine blocks, mufflers and other vehicle components.

If you plan to salvage any vehicles with air conditioning systems, you will need to register with the state to recover refrigerants . Alternatively, you can make arrangements to have a registered company recover the refrigerant for you depending on state law.

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Automotive Used Parts

Startup Costs: $10,000 - $50,000 Franchises Available? No Online Operation? Yes

Starting a business that specializes in used automotive parts is a fantastic business venture to get rolling, especially if the focus of the business is to supply hard-to-find or rare used automotive parts. The business can be operated from a homebased garage location, or a small industrial space can be rented. The used automotive parts can be advertised for sale in traditional media, such as trade-specific publications and newspapers, and by word-of-mouth referral. The profit potential for a used automotive parts business is fantastic, especially if the business specializes in rare or hard-to-find parts. Gross profit margins of 50 percent or more are not uncommon in the industry. A direct-mail marketing campaign targeted at car clubs and owners of rare cars can also be a very effective marketing tool.

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Motor Parts Business Plan
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Automotive parts business plan

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How to Start a Used Auto Parts Business: 11 Steps (with Pictures)
To start a used auto parts business, develop a thorough business plan that outlines your budget, inventory, marketing strategies, and the areas you plan to specialize in. Choose a good location for your business and obtain any licenses, permits, and insurance required by law to sell to the public.
Used Car Dealership Business Plan Template [Updated 2023]
Used Car Dealership Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their used car dealerships.
Auto Parts Store Business Plan Sample 2023
2.2 Management of Auto Parts Store. If you are just learning how to start an auto parts business, the best advice you will find is to establish strong management.You can have good management through adequate planning. And there is no better way to plan out every aspect of your store than through an auto parts store business plan pdf like the one presented here.
Used Auto Sales Business Plan
Start your own used auto sales business plan. Integrity Auto Sales Executive Summary ... Auto Sales & Parts Problem. There is a need in Lane County for a large selection of quality used cars, and Integrity Auto Sales will sell these top-quality used vehicles at a competitive price. The owner and sales manager have over 30 years of combined ...
Salvage Yard Business Plan [Sample Template for 2022]
1. Industry Overview. Salvage yards buy wrecked cars, whether they be not running or beyond repair, to sell the parts in their yards. The cars provide much more value to the yard than what they originally paid, because they can sell all of the parts individually, meaning they can buy the car for a higher price than metal scrap yards.. Reports published by IBISWORLD shows that the Used Car ...
How to Start an Auto Salvage Yard Business [Business Plan Guide]
How Does an Auto Salvage Yard Business Make Money? An auto salvage works like a buyer and a reseller. The idea is to buy a decommissioned for cheap and then sell off the parts in pieces for a profit. A successful auto salvage owner MUST be able to properly assess the value of a junked vehicle. Knowing things like how much the vehicle is worth ...
Auto Spare Parts Shop Business Plan [Sample Template for 2023]
The Auto Parts Stores Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics has it that in the United States of America alone, there are about 43,136 registered and licensed auto spare parts stores scattered all across the United States responsible for directly employing about 376,102 people and the industry rakes in a whooping sum of $56 ...
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How to Start a Used Auto Parts Business
Selling used automotive parts can become a financially recompense business gelegenheiten. Salvage dry sell used auto parts by build transportation in storage and removing the working parts. You will most likely need a tow truck to start your business, along with fixed storage on the spent cars.
Used Auto Sales Business Plan
Integrity Auto Sales used auto sales business plan executive summary. Don't bother with copy and pasta. Get this complete sample business plan as a free text document. ... Starting a used auto parts business can be an excellent way into manufacture money and impede older car parts ending up in landfills. The addition to helping the environment ...
Starting Auto Spare Parts Store Business Plan (PDF)
Pre-Written Auto Spare Parts Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements. For an in-depth analysis of the auto spare parts store business, we encourage you to purchase our well-researched and comprehensive auto spare parts store business plan. We introduced ...
How to Start an Auto Salvage Business
A junk car may be worthless to a driver, but for someone who knows how to dismantle it, the parts and metal it contains can be worth a small fortune. Starting an auto-salvage business isn't for everyone, and there are a few hurdles to get through for a license, but for those who don't mind getting their hands dirty, it can be a profitable business.
How to Start an Auto Parts Business: The Complete Guide
As you conduct research, you need to make sure that the market is big enough to support your auto parts business. 2. Research Competitors. The next step is to research your competition. Look for auto parts sales in your area and online. Do searches for different types of auto parts that you plan to sell to see what stores come up.
Automotive Used Parts
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How to Start an Auto Salvage Business

Starting a Salvage-Yard Business

State Salvage-Yard Requirements

Zoning and Environmental Regulations for Salvage Operations

Automotive Used Parts

Automotive Used Parts Ideas

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PediCab Service

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