The U.S. Department of Transportation's Statistical Records Office reports that as of May 2009, there are over 71 million registered vehicles in the United States. Tires are necessary to every driver, so they remain in constant demand. If an entrepreneur wishes to capitalize in the market of the auto parts and service industry, they can open a tire shop with some research, a plan and a business loan.
Look for retail locations to accommodate your tire shop. Contact a commercial real estate broker and ask if they can supply you with a list of suitable retail locations for a tire shop business. Not only are they familiar with available retail locations, they also will be able to assist you in selecting a location that meets OSHA requirements, EPA requirements, and has no environmental issues (each state has standards for businesses that deal in chemicals and hazardous materials—because tire shops often offer other services such as oil changes, they will be subject to regulations). For instance, the state of Ohio requires 42,000 below ground storage for auto repair shops.
Do market research. Look through trade magazines and conduct Internet research on the best selling brands and their market share. It will be important not only to offer popular brands, but to offer a variety of products to your customers.
In addition, phone the manufacturers or their vendors to see if they require a minimum initial order or have market saturation limitations (these are limits placed on retailers by the manufacturer or vendor that disallow too many retailers to offer the same product in one location because it reduces sales volumes).
Have a business plan written. Have a business plan writer draft a business plan for your tire shop business. They will likely need a pro-forma statement from a certified public accountant (CPA) to write a business plan. The pro-forma statement provides profit projections and expenses, while a business plan outlines how the business will be legally structured and sets for how the business will be advertised and operated.
Apply for a small business loan. Small business loan lender can be found through the Small Business Administration (SBA). The SBA does not lend directly to businesses, but provides information on lenders and gives guidelines on what to expect when applying for a business loan. Most business loan lenders will require a down payment and/or collateral by the applicant.
- tires on water image by JoLin from Fotolia.com