If you are planning on opening up your own motor trade business, then be prepared because this is a very competitive industry. It’s no wonder that so many people get into this industry though because when done properly, it can be incredibly lucrative. So, if you think that you have the right ideas and know a thing or two about cars, then maybe this is the job for you.
As with anything involving cars, you need to make sure that you have the right insurance first though. You can’t buy and sell cars without getting motor trade insurance. So, if you haven’t already got it, or are currently looking at getting a good deal, then this insurance company has competitive rates – so you might want to check them out to start with. This type of cover is designed to protect your business, so it should be the first thing you think about before starting up. Once that’s all sorted, there are a few other things that you need to do as well.
Learn as Much as You Can First
There’s no point going into a business if you don’t know enough. Even someone with a basic knowledge of cars will struggle to make this a successful business. You need to learn as much as you can first, and then do some more research on top of that. Even people who have been working in the motor trade industry for years still have a thing or two that they need to learn.
There is so much that you need to be thinking about before you even start your business. You need to think about what you are going to trade? Will it be brand new cars, sporty cars or cars that are considered family-friendly? What would bring your business the most profit? What would be the riskier move? Where is the best location for your business? Will you work from home? These are all things that you need to have an answer to before you even begin your business.
Do the Maths
You should also make sure that you do the maths. This links in with learning as much as you can first, as you need to have a realistic expectation of how much money you are going to spend and how much you might take in. If you don’t have a budget, then your business won’t work. You need to look at certain costs, like rent of the premises, business rates, electricity and insurance.
That’s only a small part of what your business will have to pay for though. How are you going to pay for transporting vehicles (if that’s something your business will do)? How are you going to pay your staff? What about advertisements? Are you planning on creating your own website? These are all things that you need to consider when coming up with a budget. Ask yourself – what can I actually afford to do and how much will it cost me?
If you have a budget, then you need to make sure that you stick to it. The best way to stick to a budget is to be organized. Keep a note of all purchases, all sales receipts, everything that costs you money. It might be helpful to keep a logbook or something similar that might help you keep on top of things. Don’t leave things to the last minute, otherwise, this will take up precious time.
Even if it takes a minute to make a note of something in your logbook, you should make sure to put it in straight away, otherwise, you might forget or realize that you have to spend hours in the future sorting it out. A logbook comes in handy because if you need to look something up (say someone says you didn’t sell them something, but you did), then all you have to do is look in your logbook, rather then search through all your receipts. If your business is all set up and you are looking for ways to improve it, you should check out this article here.