The motor trade in the UK can be a profitable business to get into. It turns over an incredible £64.1billion annually and employs more than 770,000 people.
But like all lucrative industries, setting up a business in the motor trade is a competitive challenge. You need to know the market well, do your research and be fully protected with motor trade insurance and then you’ll be good to go.
What’s your line of business?
The first thing you need to focus on is what kind of business you’re actually going to have within the industry. This can range from repairs and maintenance through to sales. Of course, the option is also open to combine a few services such as repairs and resale.
Where will you be located?
Once you’ve decided what sector you’re going to go into, you’ll need to think of a location. This will depend on what your business is. For example, if you want to sell cars you’ll have to find somewhere where you can store and display cars easily.
Make sure you have the proper start up capital in place. Starting a new business in the motor trade is tricky. There are many expenses to think about from rent to stock, to bills and Motor Trade Insurance. You may well need to get an investor or a business loan, but in order to do this, you’ll need a comprehensive business plan to show them.
The most effective way of doing this is by setting up a website and a social media account as explained here https://en.wikipedia.org/wiki/Social_media_marketing. Of course, there is also the old fashioned way of putting out adverts in the trade press or distributing leaflets in your area. Every little thing helps.
Do your research
As mentioned before, you’ll need to have a well thought out and detailed business plan in place. The best way to do this is to:
– Make a list of your competition in the area. List their specialities, prices and any deals they offer.
– Make sure you find the best suppliers when it comes to quality and price. This should be an ongoing process as prices can change over time.
– Find a niche that you can specialise in. This will enable you to attract customers and set you apart from your competition.