{"id":7854,"date":"2020-10-21T12:29:13","date_gmt":"2020-10-21T16:29:13","guid":{"rendered":"http:\/\/www.atyourbusiness.com\/blog\/?p=7854"},"modified":"2020-10-21T12:29:38","modified_gmt":"2020-10-21T16:29:38","slug":"how-to-start-an-auto-parts-business-the-complete-guide","status":"publish","type":"post","link":"https:\/\/www.atyourbusiness.com\/blog\/how-to-start-an-auto-parts-business-the-complete-guide\/","title":{"rendered":"How to Start an Auto Parts Business: The Complete Guide"},"content":{"rendered":"\n

Sales in the auto parts industry reached $12 billion<\/a> in the U.S. in 2019. That figure will only grow as more people turn to used cars, increasing the need for replacement parts.<\/p>\n\n\n\n

What does that mean for you? This is an excellent time to start an auto parts business. Before you jump right into starting the business, there are steps that you need to take to ensure your success.<\/p>\n\n\n\n

Most businesses don\u2019t last beyond the first five years, and you want your business to last a long time. Do you want to know what you need to do to get your business started on the right foot?<\/p>\n\n\n\n

Read this guide to learn how to start a successful auto parts business.<\/p>\n\n\n\n\n\n

1. Pick Your Business Model<\/h2>\n\n\n\n

Every new business starts with an idea. You need to take that idea and start to flesh it out to make sure that you have a viable business.<\/p>\n\n\n\n

With auto parts, you have a couple of options to create a new business. You can choose to have the entire business online through an ecommerce store and by selling parts on Amazon and eBay.<\/p>\n\n\n\n

You may have a retail store that serves your local area. Another option is to have a hybrid model, where you have an online store and a retail location.<\/p>\n\n\n\n

This allows you to serve your local area and by having an established retail location, it\u2019s easier to build trust with online shoppers.<\/p>\n\n\n\n

You want to do your research and learn how customers are searching for products and buying auto parts. You\u2019ll learn that Amazon generates about $8 billion<\/a> in auto parts sales and all online sales are expected to reach $19 billion by 2022.<\/p>\n\n\n\n

You also need to figure out the type of store you want to have. Does it make sense to have a general auto parts store, or do you want to specialize in accessories or with a type of car brand?<\/p>\n\n\n\n

Is there a market to provide parts for Japanese street racing cars? These are questions that you want to ask yourself because you want to determine your niche market.<\/p>\n\n\n\n

As you conduct research, you need to make sure that the market is big enough to support your auto parts business.<\/p>\n\n\n\n

2. Research Competitors<\/h2>\n\n\n\n

The next step is to research your competition. Look for auto parts sales in your area and online. Do searches for different types of auto parts that you plan to sell to see what stores come up.<\/p>\n\n\n\n

You need to make a few notes about your competitors. The first is the type of business, whether retail, online, or both. Next, you want to note the niche they\u2019re in.<\/p>\n\n\n\n

Keep a close watch on how they promote themselves. Do they specialize in premium brands? Do they position themselves as the cheapest in your market?<\/p>\n\n\n\n

Positioning is important because you have to claim your own space in the marketplace. Most businesses are positioned between price and quality. The higher the quality, the higher the price, and vice-versa.<\/p>\n\n\n\n

3. Write the Business Plan<\/h2>\n\n\n\n

Now that you did the initial research you need to write up the auto parts business plan. This is the main document that you\u2019ll use to build your business.<\/p>\n\n\n\n

It is a long document because it has everything from your business model to financial projections. Going through the business plan steps helps you make sure you have a profitable business.<\/p>\n\n\n\n

You need to go through your expenses and determine how much you need to make. This will be necessary because you need to know how much you have to markup the parts.<\/p>\n\n\n\n

Once you have a draft of the business plan, take it to people you trust and have them look it over. They\u2019ll be able to give you feedback or ask questions about things you missed in the initial draft.<\/p>\n\n\n\n

You\u2019ll be able to think about all aspects of the business before you move forward and invest money in the business.<\/p>\n\n\n\n

4. Make Your Business Legal<\/h2>\n\n\n\n

Are you ready to take the next step to make your business official? You need to come up with a business name and make sure that it\u2019s not trademarked or already registered in your state.<\/p>\n\n\n\n

Once you have a business name picked out, buy the domain name and register the business with your secretary of state\u2019s office.<\/p>\n\n\n\n

Part of the process to register your business is to choose your legal structure. You should consult with an attorney to make sure that you choose the right entity for your business.<\/p>\n\n\n\n

Many auto parts businesses will start out as a Limited Liability Corporation (LLC) because you create a separate legal entity. This can shield you personally from any legal issues that arise in the business.<\/p>\n\n\n\n

You have a couple of more steps to take to fully comply with the laws in your area. You may have to register your business with your state\u2019s department of transportation. Some states require it if you plan to sell used auto parts.<\/p>\n\n\n\n

A retail business will have additional business permits, which are handled by your municipality. Online businesses may be required to collect sales taxes outside of their own state.<\/p>\n\n\n\n

Make sure you check with all levels of government to make sure you comply with the law. You don\u2019t want to get shut down or fined because you didn\u2019t know the laws.<\/p>\n\n\n\n

5. Get Your Location<\/h2>\n\n\n\n

You\u2019ll need to nail down your business location no matter what type of business you have. For an ecommerce store, you\u2019ll need to have your domain name, hosting plan, and website set up.<\/p>\n\n\n\n

A retail location has other considerations. You need to make sure that your auto parts store is accessible to the community. There also needs to be ample parking, and it has to fit your budget.<\/p>\n\n\n\n

One consideration for your location is inventory. If you have an ecommerce store, will you store the inventory in your garage or at an off-site warehouse? How will they get shipped to customers?<\/p>\n\n\n\n

How much space would you need to keep items fully stocked in your retail store? You\u2019ll need to think these questions through and work with a commercial real estate agent to find the best place for your business.<\/p>\n\n\n\n

6. Develop Vendor Relationships<\/h2>\n\n\n\n

Speaking of inventory, where will your auto parts come from? How will the logistics work?<\/p>\n\n\n\n

This is where partnerships with vendors will be crucial to your success. Depending on your business, you may want to get to know people who work at auto auctions.<\/p>\n\n\n\n

Working with wholesalers may provide an advantage in price and the types of parts available. Wholesalers go-between you and the manufacturer to provide auto parts.<\/p>\n\n\n\n

There are other vendors that you should use to make your business run seamlessly. There are vendors that provide software to manage inventory, take payments, track shipments, and handle the logistics of the order. If you want to know more about these vendors, click here<\/a>.<\/p>\n\n\n\n

7. Hire Staff<\/h2>\n\n\n\n

If you choose to have a retail location, it\u2019s doubtful that you\u2019ll be at the store at all hours. You need to hire staff to manage the counter so you can step away and work on other aspects of the business.<\/p>\n\n\n\n

You can\u2019t have just anyone work in your store. You want your staff to be knowledgeable about auto parts so they can understand the needs of customers. They should have experience in the auto industry.<\/p>\n\n\n\n

8. Marketing the Auto Parts Business<\/h2>\n\n\n\n

You\u2019re ready to tell the world about your auto parts store. There are many ways to market your business, and you want to choose a few things that are sure to drive customers to your business.<\/p>\n\n\n\n

It doesn\u2019t matter if you have a retail location or ecommerce store, you need to be found in search engines. About 87% of consumers<\/a> start shopping by researching products online.<\/p>\n\n\n\n

Start by setting up directory listings on Google and Bing to make sure you’re found in local searches. It helps to have a blog because more content on your site gives you a greater chance of being found in search engines.<\/p>\n\n\n\n

9. Generate Referrals from Great Service<\/h2>\n\n\n\n

The best way for your business to grow is to develop a great reputation. People will notice every part of your business and they have very high expectations.<\/p>\n\n\n\n

Your job is to surpass those expectations with each order. Your customers should think of you as the auto parts shop to go to. They\u2019ll tell their friends, and they\u2019ll become new customers.<\/p>\n\n\n\n

Starting an Auto Parts Company That Thrives<\/h2>\n\n\n\n

This is a great time to start an auto parts business. The industry is expected to grow as more people buy used cars. They\u2019re also going to buy online.<\/p>\n\n\n\n

When you start your auto parts store, you want to keep all of these steps in mind. There is a lot that you need to do before you sell your first auto parts. The most important thing is to make sure that your business is positioned to be profitable.<\/p>\n\n\n\n

Are you ready for more great business tips?  Check out the forms on this site to help you start a business today.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sales in the auto parts industry reached $12 billion in the U.S. in 2019. That figure will only grow as more people turn to used cars, increasing the need for replacement parts. What does that mean for you? This is an excellent time to start an auto parts business. Before you jump right into starting […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55,39],"tags":[],"_links":{"self":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/7854"}],"collection":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/comments?post=7854"}],"version-history":[{"count":1,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/7854\/revisions"}],"predecessor-version":[{"id":7856,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/7854\/revisions\/7856"}],"wp:attachment":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/media?parent=7854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/categories?post=7854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/tags?post=7854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}