As with many businesses you need a plan in place before you get started. Similarly the same will apply if you wish to start your own automotive sales or repair business. Not everyone knows what the recommended steps are so here we go over but a few to give you an idea of what you need to look for and plan for before parting with your hard earned money and starting your dream business in the automotive industry. These steps are not necessarily in any specific order but it is recommended that before you start anything you begin with the Business Plan. Business Plan Any new business must make a business plan so that it is understood what is required to get your business started, what your intentions are for the future and your expectations. The costs you are likely to face and the funds you have to deal with all the required financial concerns. Your business plan should look to the future, perhaps with a 1 year, 5 year and 10 year outline of what your business expects to achieve within that period. If you are required to obtain funds to start your business you will be required to provide a business plan to the Lending institution and this also shows your commitment and thought processes for your intended business and its success. Bank Account You need to ensure you open a business account only for your business income and expenses. If you do not use this account for all your business related expenditure and income many times you will find that the income has not gone into the business and yet all the expenses are coming out of the business. This is often the reason why many businesses do not succeed. In the initial steps of your business you can expect to run at a loss and this can continue for an extended period of at least 1 year so ensure you are not taking any income from the business unless there is a huge excess of income and it is sustainable, during this first initial set up period. Insurance Ensure that you have all the required insurances to cover the operation of your business and the employees you have relating to the business. You need to consider coverage for insurance for your employees themselves as well as any property insurance such as vehicles left on your premises and also any liability issues that you can obtain insurance coverage for. Do not skimp out on insurance requirements as nobody can see the future. Ensure you get coverage for natural disasters etc. If you are able to with your current insurance provider, shop around to get the best deal. Just because you have insurance currently for your private items with a particular company, this may not make them the preferred choice for your business insurances and they may not even have these on offer. You should also look into some form of personal insurance as if you are the sole owner or operator of the business and were suddenly unable to work how would the business continue to produce an income? Not to mention of course life insurance coverage in the event that there was a death then generally all debts and profits have to go to someone and you don’t want to leave your family in debt if something were to happen to you. License Make sure that you check with all regulating authorities that you have the correct licenses and all of your staff fulfills all required criteria before you start off with your business. You do not want to outlay all your start up costs only to find you missed a simple step such as a permit that you may be required to have and you are shut down for the offence or required to pay huge fees. Advertising & Promotion Make sure that you have an allowance in your estimated costs for sufficient advertising and promotion. Once your business is open you want everyone to be able to find you so make sure that you have allowed a budget sufficient to cover your advertising and branding promotion for a minimum 3 month period if not for the entire year. Don’t rely only on newspaper advertising, try to be creative with your promotion and ensure you do some research before you get started. Things to consider are items such as a uniform for staff and small promotional items to give away at the end of a completed job or sale? Perhaps key rings with your logo and telephone number on etc. If you follow these suggestions and listen to advice of others as well as your own common sense you will find that you have a great starting platform to get your automotive business off to a great start. Research all you can about every aspect of the business you intend to start before you go ahead and this applies in any industry not only business in the automotive industry.
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