Everyone knows that starting a business is never easy, there are so many who succeed and fail on a daily business. However starting your own business brings many opportunities, like offering employment and fueling the growth of our South African economy.
A car dealership is also a good business to start. Because of our economy’s current position and the cost of living becoming more expensive, more people are buying second-hand vehicles than ever before.
Second-hand vehicles offer people the chance to have a good car while saving money. We all know that nothing makes customers happier than saving money and this is why second-hands are being bought so much. If you would like to run a successful independent car dealership, here are a few helpful tips to get you started.
Know the market you’re going into
In order to become an independent dealer, you need to know your market and your business. If you’re a car lover, you’re good at selling vehicles and passionate about business, then running a dealership is for you.
It’s also important for you to do your research if you have no experience as it’s good to work amongst other car dealerships so that you can familiarise yourself with how things work. When you do the right research it can help you learn how to effectively sell vehicles. If you’ve only been a salesman you should work with people in management so that you can get an idea of how the other side of the business works.
Once you have learnt more about the business operations you should also learn more about your target market: which customers are you planning on attracting? Young adults? Perhaps you’re wanting to target parents looking to buy their children cars, or perhaps businesses who are needing to expand their company fleet vehicles. Once you know which market your planning on targeting then you can work out how you to bring them to your business.
Many financial service providers offer finance to small businesses. Proper financing can allow you to grow your car franchise dealership. It would be best to have a good credit score before going to the bank. Having a good report allows banks to trust that you will repay them the money borrowed to you. A good credit score will also allow you to have a low-interest rate when you have to repay the lender. If you’re looking for ways to boost your credit score, make sure you pay your debts on time and reduce the amount of debt that you have.
Create a business plan
As a business owner, having a well-written business plan is important. A good business plan can help your business receive funding from a lender or an investor. A business plan will also help you manage your business the way you had envisioned to. You can always refer to your business plan to ensure you’re still on the right track.
Define your brand
It’s important to have a business brand and a marketing team that can bring in customers. This is especially important when you’re starting off, as you need to make sure you have a plan in place to attract customers to your car dealership. If you’re wondering how you can find used car franchise opportunities just make sure you have a good marketing team.
You need to register as a car dealer
If you are buying, selling, repairing, or offering cars for sale you need to register as a car dealer. The documents you will need are:
- A letter stating the nature of your business
- Letter for nominating the representative
- A certified ID copy for your representative
- An original company document in respect of the entity applying
- Tax clearance from SARS
- Proof of your business address from FICA
Once you have registered as a motor dealer, you then need to get your motor trade number and permit.
Choose a location
Look for the most suitable locations which will bring your car dealer franchising opportunities. Once you find the correct location it will be easier for you to get customers. Make sure you find a place that has enough room for your business to showcase their vehicles. When choosing the right place for your shop, make sure you look at the area. Ask yourself questions like, is it easy to find? Is it closer to other franchise dealers and how that can affect your business, you don’t want to be around dealers who sell to the same target market as you.
Get business insurance
Whether you have a big or small business, it’s important to have insurance. Insurance will help you should anything go wrong. Business insurance covers you in cases of theft, break-ins, personal accident cover should an employee get hurt at work, fire, damage of electric equipment, liability loss, and more. This is important as you never know when your business will need cover and it’s always best to be prepared.