Tyre store is one of the most popular businesses in the automobile industry. Check this article to know more about starting a tyre shop business and running it profitably.
Tyre store business demands full control of inventory and adequate knowledge about different types of tyre that comes with different features. One can start this business in a metropolitan city or in a small town.
You must evaluate the car density of that particular location. Initiating a tyre store with accessories and with service facility of vehicle balancing and alignment services is the most profitable venture one can start with moderate capital investment.
Here ar the 6 Steps to Start a Tyre Shop in India
1. Study the Market and Create a Business Plan
Before starting the tyre store you need to have sufficient knowledge about tyres. Tyres come in different shapes, sizes, and prices for different types of vehicles. Generally, there are two major different segments in tyres. One is for commercial transport vehicle tyres and another one is car tyres.
Also, study your market competitors where you want to start the business. Write a comprehensive tyre store business plan with details of the objective and mission statement. A detailed business plan will not only help you to start in the right way but also will help you in future business monitoring. Calculate the startup budget with store rent, equipment cost, inventory, and staffing needed.
2. Legal Compliances Required to Start a Tyre Shop
As a startup, you will need to determine the ownership pattern first of your tyre store. You can start as an OPC (One Person Company) or you can go with partners by formatting LLP, Pvt.Ltd or Ltd Company in India. After company formation, you will need to have a Trade License from the Local Authority. Obtain GST registration as soon as possible.
You can also start the tyre store business by having Authorized Distributorship of any renowned tyre manufacturing brand. Choose a memorable and easy-to-spell name for your tyre store business. Also, check the domain availability when choosing a name. Protect the brand name by getting a trademark registration.
3. Find a Location and Set up the Tyre Store
Like any retail business, location is an important factor to get success in tyre store business. Select a location that is on the busy high road and has a wide front opening for clear visibility access. You can also consider the location which is nearby the petrol pump or gas station. You will also need to have enough space inside for storage and equipment installation.
Ask an interior professional to create the floor plan. Select the place for storage, equipment installation, office, customer waiting lounge, etc. As tyre store is a high inventory oriented business, it is advisable to start the business with proper software.
4. Inventory and Equipment Needed to Start Tyre Store Business
The major inventory which is needed to start tyre store is different kinds of tyres as per market demand. Others are several accessories like different rims, several valves, etc.
You will need to have some other essential equipment also. These are balancers, centring devices, tyre changers, tyre pressure and pattern management system, impact wrenches, etc. Gather the supplies from a trustable vendor. Check the warranty period of that equipment.
5. Man Power Required to Start a Tyre Shop
Hire professionally skilled manpower. Ensure they have at least minimum work experience. It is advisable to keep an automobile engineer. An automobile engineer is a right person to deal with the customer’s requirements and to give them the right advice.
Also Read: Top 10 Trusted Tyre Brands In India
6. Have an Advertising Plan
A carefully crafted advertising plan is extremely critical to running a profitable tyre shop. Below are some steps you can consider;
- Publish some print media advertisements about your grand opening of tyre store.
- Offer a pick-up and delivery service to your customers.
- You can offer some special discount for purchasing tyres with accessories.
- Offer some services like wheel balancing free on purchasing tyre.
- Keep stock a wide selection. Customers will be more likely to buy tyres from your tyre store if you have a large selection and offer the sizes and brands they are looking for.
- Offer promotional gifts to your valued customers. It will keep your customer happy and it is also effective as a brand-building tool.
- Make an online presence by creating a website for your tyre store business.
- Register your products on a popular eCommerce portal to sell the tyre online.
Is Tyre Shop Business Profitable in India?
If you are looking for a retail business in the automobile industry sector and willing for a reasonable investment, a tyre shop can be a perfect fit for you. Both retail selling and distribution offer a decent margin in this business.
Generally, a multi-brand store earns more profit than a single-brand store. A multi-brand store can offer tyres in different brands and prices. So it attracts more customers and enhances profitability.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.