After several years, your thinking of launching a new career as an auto parts store owner. You own an old building where you plan to open an auto parts store, debt-free. The auto parts store is in a small town, so you don’t expect heavy traffic, but you are hoping your low overhead will help compensate for a smaller customer base. Would you be right to open an auto parts store like this?
An inventory-heavy retail venture like this, for a first-time entrepreneur in a location with a small customer base and little foot traffic, is particularly risky. Assuming you’ll be using retirement or other savings to launch this business, your nest egg could easily slip through your fingers unless you do better than hope your business can support you.
Just because you own a building doesn’t mean it’s a good location for an auto parts store. Location is so crucial to retail business success that you might be wiser to lease your building out as office or warehouse space and use the income it generates to rent an affordable storefront in a more retail-friendly spot. It’s not a good idea to think that since you’re not paying rent, everything will be fine. By opening an auto parts store, you’re giving up the opportunity to earn money working elsewhere and giving up the opportunity for the building to provide a rental income stream.
Projections and Placement
You need to do some serious financial projections, based on realistic estimates of what it will cost you to make building improvements, put up signage, and purchase inventory, fixtures, and equipment. You’ll also want to look at what you can expect to pay in monthly operating costs, including often overlooked overhead items such as insurance, business taxes, and permits. Don’t forget to include a sales and marketing budget.
Then you’ll need to research issues such as: Is there a need in this community for what you’ll be selling? Is anyone else doing it already? Will this business be a hobby, or do you expect it to be profitable? How much will you need to sell on a daily, weekly, and monthly basis in order for the business to supply you with sufficient income? What’s the potential for growth in your community? Do local demographics support a market for luxury purchases particularly at a time of significant economic uncertainty? Can you draw clients from a distance?
Other retail consultants suggest you’ll have to draw customers from a larger region to be successful. You’ll have to spend a lot of money to get people to come from farther away, and you’ll have to sell unique items that can’t be purchased at Cost, so they cannot be discounted at large discount stores such as Costco and Walmart or be purchased online. Even if you invest in fun, unique inventory, you may not have enough traffic to get a decent turn on your merchandise. Then you’ll have money tied up in stock that could be earning x% sitting in the bank.
Do some homework on entrepreneurship in general and retail operations specifically, then write a simple auto parts store business plan. If you’re realistic about your costs and potential sales, the plan should help you make a good decision about whether this opportunity is right for you or not.
The auto parts store business plan :-
1. Has been fashioned with 7 year’s know-how on the web; we know what is necessary for your auto parts store business.
2. Is provided with a 2nd business plan for nothing!
3. Is sold with a huge collection of extra’s with over 35 spreadsheets and greater than one thousand pages of added information, suggestions and templates.
4. We also incorporate an easy to use web-site. Provided free together with twelve month’s free hosting worth $50!
We also provide special versions of our plans – US,English, and a general version of the auto parts store business plan containing specialized up-to-date content for each particular market.
Why have over 40,000 business owners purchased business plans from our websites?
1. Because they appreciate that their time has monetary value and surfing the internet for free of charge papers will cost them a lot more than our charges.
2. They understand that a 5 year old free auto parts store business plan is of little use for their auto parts store business today! It could damage their business.
3. Businessmen/Businesswomen know that fictitious numbers on the internet would not probably work in their business. How could a set of figures work in completely different tax regimes, different states and countries? We make certain our customers have the chance to input correct, real numbers.
4. The auto parts store business plan is this year’s plan; written for current businesses! The easiest way to kick-start your business plan.
5. We charge the right price for the plans.
6. We do not see your payment details making it totally secure.