Things to consider before opening a car dealership
A car dealership is a business suitable for any location across the nation as the demand for cars is always going to be there. If you're thinking of starting your own dealership then there will be may considerations before you get started.
With over 32 million cars on UK roads, there's definitely a market for car dealerships, but before you get started, there are some things you should consider.
Setting up a business takes time, but the key to longevity is to lay down the right foundations. By following these simple steps, we'll help you create those important fundamentals for a fruitful car dealership.
Consider the services you'll offer
Before you start searching for premises for your fledgling business, you'll need to think about the services that you'll offer. Will you strictly be a dealership, or will you offer vehicle MOTs and services, maybe you'll help customers finance their new car purchases?
These services will not only impact the amount of space you'll need for your premises, but also the number of staff you'll need to hire. The more staff, the more costs involved with hiring such as social media screening, recruitment agencies and so on. However, the larger the space and staff, the bigger the potential growth possibilites are for the business.
Thinking about the services now will help you figure out the type of property you need, where it needs to be, and importantly how much it could potentially cost.
Think about the types of cars you want to sell
Decide on the types of cars you want to sell. If you're passionate about vintage cars, then consider opening a specialist vintage car dealership. If you love high-end cars, then create a business that only sells those luxury vehicles.
Or, if you're looking for a mass-market dealership, then consider setting up a used-car dealership with well-known and well-liked makes like Audi, Volvo, and Kia.
Consider who your competitors are
Knowing what types of cars you'll sell will help you understand who your competitors are. Whether you want to sell face-to-face or have a strong online presence, you should take the time to research your competitors and see what sort of industries are already growing in your planned business location.
With over 5.6 million SMEs in the UK – there's no shortage of inspiration out there for you! Look at what they do well and what they need to improve on. If you're serious about your business, consider being a mystery shopper and see how they treat potential customers.
Create a business plan
Once you've researched your competitors, you'll be able to figure out what the gaps in the market are. This can help provide the basis for your business plan.
Your business plan is perhaps one of the most important foundation stones for any new start-up. It should detail your objectives, strategies, sales, marketing, and financial forecasts, as well as information about your operations and management plans.
Not only is it useful for prospective investors, if you need ways to fund your business idea, but it will help give you a focus on what you want to achieve and the timelines to achieve them.
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