What Factors to Consider Before Opening a Tire Shop Business
08/03/2023 | Unite Automotive Equipment
The steps to open a tire shop are now in front of you. However, before you proceed, let’s look at a few very important points to consider first.
Is Running a Business for You?
Many people dream of owning and running their own businesses for various reasons. Some people are getting away from a job and would rather be their own boss, while others want a lifestyle from owning a successful business. Others have a passion for what they’re doing, and they start a business offering products and services in that field.
To get a better idea of whether you’re getting into the right business or not, let’s look at it in the following way.
Imagine you won the lottery! You have traveled the world. You helped friends, family, and relatives and gave to charity. You own your dream home, and you have everything you’ve ever wanted. You’ve taken two years off, and you still have $5 million in the bank. What are you gonna do with the rest of your life?
If you said you would start a tire shop, you’re passionate about the business you’re about to start and on the right track. But, if you said something else, then should you be pursuing that instead?
Do You Have the Skills?
Do you have the skills necessary to run a business? If not, you can learn as you go. For example, you can use an advisor to help make important decisions. You can take a small business course. Or you can hire a manager to run a business.
The second question is, do you have the skills and expertise needed to install tires? Again here, you can learn as you go, or you can hire a tire technician.
To have full control over your business and understand each part of it, you must learn each of these tasks if you don’t have the skills for them and end up hiring. If you fail to do so, you may end up in a bind, especially if one of your key people leaves.
Is It Better To Start a Business From Scratch or Buy One?
There are pros and cons to buying a business versus starting your own. For example, when you purchase a business already in operation, you start to make money the day you take over.
In addition, when you purchase a business, you own the customer base, which takes a lot of time to build. You also have everything set up for you and ready to go.
Some cons include that it is usually more expensive to purchase a business already in operation than to start your own because it is set up and has customers.
Another disadvantage is you may be purchasing underlying problems the business has. If you don’t like how the business is set up, it will be difficult to change its direction.
Should You Consider a Franchise?
You may want to consider purchasing a franchise. Like everything else, it has its pros and cons.
When you purchase a franchise, the setup is easy because everything is already planned. The look of your shop, the products, and services you provide, and how you train your staff are all in place for you. Everything is standardized. You don’t have to put much thought into starting or operating the business. You just have to follow the procedures.
Franchises have several disadvantages, including ongoing franchise fees and no control over the business since it is standard and all locations are very similar. In addition, there’s nothing you can do to change how your business is run or the products and services you provide.
Along with the steps for starting a tire shop and the issues to consider before starting, I have also included some resources you can use before and after you open.
Trends and Statistics
Trends and statistics are great ways to introduce yourself to the industry. This information can help you become more knowledgeable. As an example, you can determine if the industry is on the rise or on the decline.
Additionally, you can learn about new products and services, what’s hot, and what’s not.
The equipment you purchase to service your customer’s tires is an important step that affects your business. Therefore, it makes sense to do your research before purchasing any equipment(For example, tire changer, wheel balancer, tire inflator, car jack, car lift) to avoid purchasing equipment that isn’t appropriate for the job and wasting a great deal of money.
Reviewing the equipment that other tire services are using is one way to determine how well it works. Talking to tire dealers is another, and reading online reviews is another way to find out how well it works. It is also possible to inquire about the equipment used by other tire shops, not in competition with yours.
Try to find out if your dealer will let you try out a used piece of equipment similar to the one you’re considering before you make a final decision.