The auto trade is a competitive industry, full of car enthusiasts, entrepreneurs, and salespeople, some of whom have recently become dealers, others of which have been in the business for decades. You also need to understand the nuances as well as rules and regulations that affect your business. However, there are few key considerations and tips to follow before entering into the industry and here are some of the most important:
Do your research
One of the first questions you should be asking yourself before setting up as a car dealer is whether it is really something you would like to get in to. There are a great number of people who, due to their steadfast passion for cars, believe that it must surely be a good idea to work with cars too.
However, this could not be further from the truth. Anyone who rushes into a line of work or starts up a business, for no other reason than it always being a ‘hobby’ of theirs, is inevitably set up to fail.
Always make sure you conduct extensive market research, not only into the industry as a whole, but more specifically the local market for it. This should provide you with a fairly rough idea of how you will fit into it all, give you an idea of what to expect from sales, and whether the market you are entering actually needs another car dealer, or whether it is already oversaturated.
Get insured
Motor trade insurance allows car dealers to drive customers’ cars without having to get insured on each one individually. It covers them over a range of different circumstances, and avoids any complications that may occur further on down the line.
Shopping around to find the right insurance is well worth the time, as each company offers different cover. Get Motor Trade Insurance From Tradex for a comprehensive package that will leave you feeling confident that should anything happen, you will be fully covered.
Find your first customer
Completing your first sale is an exciting time, as well as a learning curve for future sales. Whether it is someone within your social circle, a friend of a friend or a complete stranger, it is important to get the first deal underway to get the ball rolling and instil a sense of confidence in what you are doing.
The more customers you garner, the better an idea you can form of what your target audience should look like. You do not want to be too broad when you start marketing yourself to people; instead, focus your attention on a select group, taking into consideration their age, gender, income, education etc., so that you can market specifically to them.
Register as a sole proprietor
Once you have completed your first sale, it is time to register as a sole proprietor with the government to avoid being fined later on. Like any other job, the inland tax revenue need to know if you are in employment, regardless of how much you earn in a year. Make this a priority as soon as you can to avoid problems.
