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 opportunity demands full control of inventory and some adequate knowledge about different types of tyre that comes with a different unique number. One can start this business in a metropolitan city or in small towns. Only need to 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.
Stepwise Business Plan to Start a Tyre Shop
Study and business plan for opening Tyre shop
Before starting the a 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 objective and mission statement. A detail 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.
Legal compliance Required to Start Tyre Shop
As a startup, you will need to determine the ownership pattern first of your tyre store. You can start as a 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.
Location and set up of Tyre Store Business
Like any retail business, location is an important factor to get success in tyre store business. Select a location which 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 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 highly inventory oriented business, it is advisable to start the business with having a proper software.
Inventory and Equipment Needed to Start Tyre Store Business
The major inventory which is needed to start tyre store is different kind 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. Those are a balancer, centering 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.
Man Power Required to Start Tyre Store Business
Hire professionally skilled manpower. Ensure they have at least minimum work experience. It is advisable to keep an automobile engineer. An automobile engineer is the most right person to deal with the customer’s requirement and to give them the right advice.
Advertising Ways to Run a Tyre Shop Business
A carefully crafted advertising plan is extremely critical to run a profitable tyre shop. Below are some steps you can consider;
- Publish some print media advertisement 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 like t-shirts etc. It will keep your customer happy and it is also effective as a brand building tool.
- Make online presence by creating a website of your tyre store business.
- Register your products on popular eCommerce portal to sell the tyre online.
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.