Question: Sir I m thinking of to start the business of automobile service center in USA. My personal capacity is between 50,000 USD. Can you suggest me, whether within the above capital can I start automobile service center and provide some useful advise relating to automobile service center.
Tips to Start Automotive Business
Answer: Nice idea to start automobile service center.
First of all decide the location which provides good opportunities generally the location should be at place where people of the city used to pass through and also should be cost effective. Contact with big automobile dealers and big service station which will provide you work.
Decide the policy which is beneficial to you as well as to big dealers and service station. Be in contact with all big dealers and service station of automobile companies, which will be beneficial to your business in long run.
To establish your status and be known to customers is really tougher job as well interesting. Start advertising in news papers, appoint few salesmen and give them locality to advertise your service center and schemes, how beneficial is your scheme and how it will be fruitful to customer.
Go on advertising yourself within your family group, friend circles, and business circles. This kind of business mostly depends upon contacts so try to develop strong contacts both on supplier’s side as well on customer side. Employ mechanics who are smart enough to use the equipment and handle all types of automobiles and their parts.
Such kind of business in locality would require minimum capital of around 15,000 USD if you would prefer to purchase your own equipment. Bank also provide finance to the extent of 70% of the cost of the project so if 15,000 USD is the cost of the project then you can take the bank loan to the limit of 10,000 USD since you have capital contribution up to Rs. 10,000 USD you can very well go ahead to start your own business. The loan procedures will take around 3 months so better you start the procedure now only so that with in time limit you can start your business as soon as possible.
Other option is you can take the equipment on lease, if you prefer this option you can start your business without bank loan, even when you find your business non profitable you can stop it you will not be required to bare huge loss due to equipment obsolescence. But it will create problem latter on like lease rent may increase, if the counter party cancels the contract in between your ongoing business will be affected.
All these are pros and cons which one should look at to predict the future and make the correct decision in the light of all the possible aspects. So good luck I hope the above guidance would help you and provide you some basic but IMP information.