Automotive Business Plan and Ideas: How to Start Automobile Business

June 15, 2010 4 Comments

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. Automobile service center requires some investments also requires your dedication and devotion to your business because building the customers is really tough job in this kind of business. After all you have decided to start means you may be aware of all the pros and cons of it.

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. Start purchasing the required machinery and all useful equipment to the business.

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.

4 Comments »

  • tavinder kumar nayyar said:

    I am an exprienced person in repair & maintenace of mobile equipments like mining & construction equipment. These are almost same as automobile. I agree with the recomendation that business mainly depends upon your contacts. However normally car owners are neither satified with independant service providers nor with authorised service centers.
    It needs lots of dedication & good work to win customers. I think tranceprency in dealing with the car owners & an effort to educate them will make you win them over others.
    this is a nice & intresting proffession
    good luck
    go ahead & give your feed back

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  • nikhil said:

    Sir I m thinking of to start the business of automobile alignment center in my town in india. my ivestment capacity is 1,50,000 but m/c price aproximately 5,00,000. I have good location & no competitor for this bussiness in this area.but i have fincial help, whose help me for finance in india. suggest bank or organization.

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    Scott Wilson Reply:

    Mr. Nikhil,
    Try to go to some co-operative bank and ask them for the loan. For that you have to prepare a proper project report and proper plan. You will have to keep 25% margin of your money. The rest will be provided by the bank if your loan gets passed.
    Thank you.

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  • T S said:

    Hello, I am a Working man. I am working in Auto parts manufacturing company, posted in Virginia.
    I want to open a spare part shop. How Can I proceed?
    How can I register my firm name?
    How can I apply for VAT?
    I shall be very thankful to you if you send me the procedure in detail…

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