auto parts export business plan

• Website Design & Development Services
• Startup Branding
• Paid Marketing
• Organic Marketing
• Market Research
• Business Plans
• Pitch Decks
• Financial Forecast
• Industry Market Research Reports
• Social Media & Website Guides
• Case Studies
• Services Marketing Website Design & Development Services Startup Branding Paid Marketing Organic Marketing Consulting Market Research Business Plans Pitch Decks Financial Forecast
• About Resources Articles Templates Industry Market Research Reports Social Media & Website Guides Case Studies Team

Auto Parts Export Business Plan Template

Explore Options to Get a Business Plan.

Are you interested in starting your own Auto Parts Export Business?

Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management.

How To Write a Business Plan for Auto Parts Store in 9 Steps: Checklist

By henry sheykin, resources on auto parts store.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

According to a recent report by Statista, the worldwide auto parts industry is projected to reach $484.4 billion by 2025, with the Asia Pacific region accounting for nearly half of the market share. With the industry experiencing steady growth, starting an auto parts store can be a profitable venture.

However, starting any business requires a well-thought-out plan, and an auto parts store is no exception. In this article, we'll guide you through nine essential steps to help you write a business plan for your auto parts store and position yourself for success in the industry.

Whether you want to establish an online store or a brick-and-mortar location, our checklist covers everything from conducting market research and identifying your target customers, to establishing supplier relationships and creating a marketing strategy.

Conduct Market Research

Before starting any business, it's essential to conduct thorough market research to get a better understanding of the industry and target customers. Market research helps you identify potential competitors, industry trends, and market demand, which will shape your business plan and strategy. Here are some steps to follow:

• Define Your Industry: The auto parts industry is vast and diverse. You need to define your specific niche and industry segment to conduct targeted research. Are you focusing on OEM or aftermarket parts? Are you specializing in particular vehicle brands?
• Identify Your Target Customer: Your target customers are the people who are most likely to buy your products. You need to understand their preferences, buying habits, and behaviors. Are they DIY car enthusiasts, professional mechanics, or car dealerships?
• Research Market Demand: Use tools such as Google Trends, SEMrush, or Ahrefs to analyze search volume for relevant keywords and phrases. This data can help you determine the market demand for your products.
• Look at Industry Trends: Stay updated with trends in the auto parts industry such as advancements in technology, changing customer preferences, or new government regulations.
• Identify Potential Competitors: Identify your direct and indirect competitors and analyze their strengths, weaknesses, and market positioning. Look at their pricing, customer service, marketing strategies, and product portfolios.
• Check Online Reviews: It's essential to see what customers are saying about your competitors. Check online reviews on Yelp, Google, or other review sites to get insights on customer experiences and satisfaction levels.
• Use surveys or questionnaires to collect data directly from potential customers. Consider using tools like SurveyMonkey or Google Forms.
• Attend automotive trade shows or exhibitions to network with industry experts and stay up-to-date with the latest industry trends and technologies.
• Consider hiring a market research firm to conduct a more in-depth analysis of your industry and target customers.

Identify The Target Customers

The success of any business depends on identifying and understanding who its target customers are . Therefore, it is essential to conduct market research to determine which group of consumers in the auto parts industry you will be targeting. Whether you are running a brick and mortar or online store, it is important to visualize who your target customers will be.

Start by defining your targeted market . This could be anything from a specific vehicle type to a particular group of consumers. For example, you may decide to target modified car enthusiasts, off-road vehicle owners, or classic car restorers. It is important to understand the specific needs and preferences of your targeted market to provide them with the right products and services.

Identify demographics

Understand their behavior, segment your market.

Analyze your competition. Identify which companies are currently serving your target customers and what they are doing to satisfy their needs. It is important to differentiate yourself from your competitors and offer something unique to attract your target customers to your auto parts store. Use the information you gather from your competitors to improve your own product offerings and customer service.

Ultimately, the success of your online auto parts store will be determined by your ability to cater to the needs of your customers. Identifying your target customers during the business planning stage will enable you to create a targeted marketing strategy that maximizes sales and customer satisfaction.

Identify The Potential Competition

One of the critical components of writing a business plan is identifying your competition. This step requires you to research and analyze the competitive landscape, which will help you distinguish yourself from other businesses in the same industry. A thorough analysis of your competitors will help you come up with a plan that can help you succeed in the market.

When conducting competitive research, the following are some of the factors you must consider:

• Types of products and services they offer
• Pricing and discounts offered
• Marketing and advertising strategies
• Location and accessibility to customers
• Strengths and weaknesses of the competitors
• Online presence and user experience
• Use search engines and online directories to gather information on your competitors.
• Visit their websites to get a detailed analysis of the products and services they offer.
• View their SEO rankings and social media presence to understand their online marketing strategy.
• Take note of the number of reviews they have and read customer feedback to get an idea of their customer service and satisfaction.

By analyzing your competition, you can identify gaps in the market or identify strategies that work for other similar businesses. This will help you to better establish your own business in the competitive landscape.

For example, if you notice that the competitors in your area are lacking in customer service, you can emphasize your business's commitment to excellent customer service and gain a competitive advantage.

• Use a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats posed by your competitors.
• Join industry associations to learn about the latest trends and best practices.
• Attend industry trade shows to network with other industry players.

Overall, identifying your potential competition is an essential step in crafting a successful business plan. It helps you allocate resources and focus on your unique selling proposition, which will ultimately help your online auto parts store succeed in the competitive landscape.

Determine The Funding And Resources Needed

Starting an online auto parts store requires a substantial amount of funding, and it is essential to determine the required resources and capital needed to start and sustain the business. The budget required for an online store involves several factors such as website development, marketing, inventory management, office equipment, legal procedures, and employee salaries. Below are a few steps to help you evaluate and determine the necessary funding and resources for your business:

• Consult with financial advisors or business consultants to estimate the financial requirements of the auto parts store and develop a solid financial plan.
• Consider investing in automation software to streamline the inventory management and other store operations.
• Determine if you need to rent a warehouse or office space or if you can operate from home.

Develop A Comprehensive Business Plan

To determine the required funding and resources necessary for an auto parts store, it is essential to develop a comprehensive business plan. A business plan should include detailed information about the products and services the online store intends to provide, detailed market analysis, financial projections, and funding sources. A well-devised business plan can help attract potential investors or secure funding from banks or other financial institutions.

Research Financial Options

Several financial options can help secure funding for an online auto parts store. Business owners can secure funds through traditional loans, crowdfunding, angel investments, venture capital, or even personal savings. While each funding option has its advantages and disadvantages, it is essential to evaluate and choose a funding source that suits the business needs.

Track Expenses

It is crucial to track expenses to determine where the financial resources are being used and monitor the budget. Keeping track of the expenses will also help identify areas that require cost optimization and reduce unnecessary spending.

Consider Alternative Resources

Starting an online auto parts store requires not only financial resources but also some non-financial resources such as time, skills, and expertise. Business owners can leverage their skills and expertise by delegating tasks to employees or outsourcing specialized tasks such as website development, graphic design, or marketing to third-party companies.

By following these steps, you can determine the funding and resources required to start and sustain an online auto parts store successfully.

Outline The Products And Services That Will Be Offered

The success of your auto parts store will majorly depend on the products and services you offer. With that in mind, it's important to outline the products and services that will be offered to ensure that you meet the needs and wants of your target customers.

Product Catalogue: Create a comprehensive catalogue of auto parts you intend to sell. Depending on your target customers, you may offer a mix of OEM and aftermarket parts. Include detailed product descriptions, specifications, and images that clearly show the features and benefits of each item. This will provide your customers with the necessary information to make informed purchasing decisions.

Installation Guides: Offering installation guides is a crucial feature of your online store. Most customers will require detailed instructions on how to install the part they've purchased. Make sure the guides are simple, easy to understand, and include diagrams where necessary. You may provide both written and video tutorials, depending on the complexity of the installation process. This will increase your customers' confidence in your products, and they'll appreciate the extra help offered.

Customer Service: Providing excellent customer service will set your auto parts store apart from competitors. Customers value quick response time, knowledgeable staff, and expert advice. Ensure that your team is well-trained to handle technical queries and customer complaints. You may also offer customer service via email, chat, or phone. In addition, providing delivery and returns that are easy and hassle-free will be an added advantage and ensure repeat customers.

• Offer discounts for frequent buyers or bulk purchases.
• Create bundles of related items that customers are likely to purchase together.
• Partner with local auto repair shops who may refer customers to your business.

Warranty: Offering a warranty or return policy can help customers feel secure about their purchasing decisions. Be clear about your warranty policies, including the length of the warranty and the terms and conditions for returns. Make sure to provide clear guidelines on the return process. A clear warranty and easy return policy will give confidence in your customers.

Having a well-outlined catalogue of products backed with quality and reliable services will set your auto parts store apart from others. Remember to put the customers’ needs first and deliver an exceptional experience they can’t find elsewhere.

Establish Supplier Relationships

One of the most important aspects of running an auto parts store is sourcing high-quality products from reliable suppliers. Establishing supplier relationships is crucial to your success, as it will ensure that you have a steady supply of products to sell in your store.

When identifying potential suppliers, consider the following:

• Product Quality: Look for suppliers who offer high-quality, OEM and aftermarket auto parts that meet industry standards. Do not compromise on quality just to save on costs, as it will affect your reputation in the long run.
• Pricing: Compare the prices offered by different suppliers and negotiate for better deals. Look for suppliers who offer bulk discounts or special promotions to help you save money.
• Reliability: Choose suppliers who are reliable and have a good track record of fulfilling orders on time and accurately. Late deliveries and backorders can adversely affect your business.
• Customer Service: Consider suppliers who have excellent customer service and are willing to work with you to resolve any issues or concerns that may arise.
• Attend trade shows and events to meet suppliers in person and establish a personal relationship with them. This can help you negotiate better deals and collaborate more effectively in the future.
• Ask for references and speak to other businesses that have worked with the supplier to gauge their reliability and customer service. This can help you make an informed decision.
• Consider working with multiple suppliers to diversify your product line and reduce the risk of any disruptions in the supply chain.

Once you have identified potential suppliers, establish clear communication channels and set expectations regarding delivery times, payment terms, and product quality. Keep track of your inventory levels and ensure that you order enough stock to meet demand without overstocking.

Remember, your supplier relationships are a key component of your business's success. Invest time and effort in cultivating these relationships, and you will reap the rewards in the form of a steady supply of high-quality products and a growing customer base.

Choose A Location For The Store

Choosing the right location for your auto parts store is crucial to its success. The ideal location for your store will depend on various factors such as the local market, accessibility, and visibility. Here are some tips to help you choose the perfect location for your store:

• Research your local market - Look for areas with high demand for auto parts stores. Identify potential competitors and evaluate the market saturation in the area.
• Consider accessibility - Choose a location that is easily accessible by your target customers. Consider the proximity to main roads, public transportation, and parking facilities.
• Look for high visibility - Choose a location with high foot traffic or visibility from the road. This will help increase brand exposure and attract potential customers.
• Consider the size and layout - Choose a location with enough space to hold your inventory and display your products. Ensure the store layout is functional and optimized for sales.
• Check zoning laws - Ensure that the location is zoned for commercial use and complies with local zoning laws.

Once you have identified potential locations, evaluate them against your business plan and budget. Consider the cost of rent, utilities, and other expenses. Create a list of pros and cons for each location to help you make the final decision.

Remember that your store location can have a significant impact on your sales and profitability. Take the time to research and choose the perfect location that meets your business needs and goals.

Determine The Legal And Regulatory Requirements

Before starting an auto parts store, it's crucial to determine the legal and regulatory requirements in your area. These requirements vary by location and can include licensing, permits, insurance, taxes, and zoning laws.

• Licensing: In order to legally operate an auto parts store, you may need to obtain a business license or permit from your local government. Check with your city or state laws to determine the specific requirements.
• Insurance: It's important to have insurance to protect your business from accidents or other unforeseen events. Consider getting liability insurance, property insurance, and workers’ compensation insurance for your employees if you have any.
• Taxes: You will need to register your business with the state and federal government for tax purposes. Depending on your location, you may also need to collect and remit sales tax on the products you sell.
• Zoning Laws: Check with your local zoning board to ensure that the location you choose complies with zoning laws for commercial businesses.
• Find an attorney or legal advisor who specializes in small businesses to help you navigate through the legal requirements.
• Check with industry associations like the Auto Care Association, the Specialty Equipment Market Association (SEMA), or the Automotive Aftermarket Suppliers Association (AASA) for legal and regulatory updates in your area.
• Consider registering your business as a Limited Liability Company (LLC) to protect your personal assets from any legal issues that may arise with the business.

By determining the legal and regulatory requirements early on in the planning phase, you can avoid any legal issues down the road and ensure that your business is operating in compliance with the laws and regulations in your area.

Create A Marketing Strategy

Once you have completed the other eight steps in this checklist, it’s time to create a marketing strategy for your auto parts store. Below are some key considerations for developing a comprehensive marketing plan:

• Make sure your marketing strategy aligns with your business goals and target audience
• Allocate a set budget for marketing
• Test and measure the effectiveness of your marketing activities to optimize performance

1. Define Your Unique Selling Proposition (USP)

Identify what sets your auto parts store apart from the competition. Highlight the benefits customers can expect from purchasing products from your store that they cannot find anywhere else.

2. Identify the Appropriate Marketing Channels

Determine the most effective channels to reach your target audience. Some options could include search engine optimization (SEO), pay-per-click (PPC) advertising, social media advertising, email marketing, and content marketing.

• Research your competitors to determine which channels they use and which ones they neglect, and use that information to differentiate yourself.
• Utilize social media platforms to connect with customers and build brand awareness.

3. Develop a Content Marketing Strategy

Develop and distribute high-quality, engaging content that helps educate customers about your products and services. Consider creating how-to guides, product reviews, and other content that can help customers make informed purchasing decisions.

• Use keywords and content that drive traffic to your website
• Post regular updates to keep your content fresh and up-to-date.
• Optimize your content for search engines to improve your website's ranking on search engine result pages (SERPs).

4. Utilize Email Marketing

Send regular newsletters and promotional emails to your subscribers to keep them engaged and updated on any new products and offers. Make sure to include clear calls-to-action.

• Offer incentives to motivate customers to sign up for your email list.
• Personalize your emails for each subscriber

5. Monitor and Evaluate Your Marketing Performance

Continuously track and measure the effectiveness of your marketing activities. This will allow you to adjust your strategy and optimize performance over time.

• Set key performance indicators (KPIs) to track progress over time.
• Use tracking tools to monitor your website's traffic and performance metrics.

Writing a business plan is crucial for the success of any business, including an auto parts store. By following these nine steps, you will be able to create a comprehensive business plan that will help you establish and grow your online auto parts store.

Conducting thorough market research, identifying your target customers and potential competition, determining the necessary funding and resources, outlining your products and services, establishing supplier relationships, choosing the right location, understanding the legal and regulatory requirements, and creating an effective marketing strategy are all essential components of a successful business plan.

By providing customers with quality OEM and aftermarket auto parts and accessories, in-depth product descriptions and installation instructions, professional advice, and superior customer service, you can differentiate your online auto parts store and grow your business.

• Conduct market research
• Identify target customers
• Identify potential competition
• Determine funding and resources needed
• Outline products and services
• Establish supplier relationships
• Choose location for the store
• Determine legal and regulatory requirements
• Create marketing strategy

$169.00 $99.00 Get Template

Related Blogs

• Starting a Business
• KPI Metrics
• Running Expenses
• Startup Costs
• Pitch Deck Example
• Increasing Profitability
• Sales Strategy
• Financial Modeling
• Rising Capital
• Valuing a Business
• How Much Makes
• Sell a Business
• Business Idea
• How To Avoid Mistakes

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

How to Start a Profitable Auto Parts Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a auto parts business plan., 3. develop a auto parts brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for auto parts., 6. open a business bank account and secure funding as needed., 7. set pricing for auto parts services., 8. acquire auto parts equipment and supplies., 9. obtain business insurance for auto parts, if required., 10. begin marketing your auto parts services., 11. expand your auto parts business..

Embarking on an auto parts business venture requires a thorough understanding of the market landscape. This vital step helps in identifying the current trends, customer needs, and competition. Here's how to perform a detailed market analysis:

• Analyze the demand for auto parts in your targeted location by researching the number and types of vehicles in use, frequency of parts replacement, and common issues faced by vehicle owners.
• Identify your potential customer base, including private car owners, local mechanics, auto repair shops, and fleet operators, to understand their specific needs and preferences.
• Study your competition by examining other auto parts businesses in the area. Evaluate their product range, pricing strategies, customer service, and market share to identify gaps and opportunities.
• Examine industry trends, such as the rise of electric vehicles, aftermarket modifications, and e-commerce platforms, to anticipate future market shifts and technological advancements.
• Assess the availability of suppliers and manufacturers, considering factors such as quality of parts, cost, reliability, and delivery times to ensure a consistent supply chain.
• Gather data on pricing strategies to establish competitive yet profitable pricing for your inventory.

Are auto parts businesses profitable?

Auto parts businesses can be profitable depending on a variety of factors, including the size of the business, the type of products and services offered, the local market conditions and competition, and the marketing strategies used. Additionally, efficient management practices, such as cost-control measures, inventory optimization and pricing strategies, are essential to ensure profitability.

Creating a business plan is a crucial step in establishing a successful auto parts business. It serves as a roadmap, outlining your business goals, strategies, and the methods you'll employ to overcome challenges and achieve success. Below is a step-by-step guide to help you draft a comprehensive business plan.

• Executive Summary: Begin with a concise overview of your business, its mission, and the products you'll offer. Include your business objectives and a brief description of your target market.
• Market Analysis: Research the auto parts industry to identify current trends, customer needs, and the competitive landscape. Define your target market's demographics and buying habits.
• Organization and Management: Describe the structure of your business, including ownership, management team, and employee roles. Outline your recruitment and training strategies.
• Products and Services: Detail the auto parts and services you plan to offer, their benefits, and how they stand out from competitors.
• Marketing and Sales Strategy: Explain how you intend to attract and retain customers. Discuss your pricing, advertising, sales tactics, and distribution channels.
• Financial Projections: Provide an estimate of startup costs, projected income, cash flow, and a break-even analysis. Include any funding requirements and potential sources of capital.
• Appendix: Attach any additional documents that support your business plan, such as resumes, legal agreements, or detailed market studies.

How does a auto parts business make money?

An auto parts business makes money by selling a variety of car accessories and tools necessary for vehicle repair or improvement. The target audience for this type of business can be any person who is in possession of a vehicle or anyone that may need assistance with auto repairs. Customers can range from individuals who like to tinker on cars to auto mechanics in need of certain parts for jobs. In addition, customers may also include garages and body shops that need to keep up with trends in the automotive industry. For example, a target audience for an air duct cleaning business could be car owners who live in areas prone to dust and other airborne particles that quickly collect in air ducts.

Creating a strong auto parts brand involves distinct positioning and a clear value proposition that resonates with your target market. It's essential to differentiate your brand from competitors and establish a reputation for quality, reliability, and service. Here are some key steps to guide you in developing a robust auto parts brand:

• Define your brand identity: Choose a brand name, logo, and slogan that clearly communicate what you stand for and appeal to your target audience.
• Understand your customers: Conduct market research to identify the needs and preferences of your potential customers and tailor your branding to meet those expectations.
• Highlight your USP: Determine your unique selling proposition (USP) and ensure that it is central to your branding and marketing efforts.
• Build a strong online presence: Develop a professional website and engage on social media platforms to connect with customers and build brand recognition.
• Quality and consistency: Ensure that every product you offer is of high quality and your branding is consistent across all channels and packaging.
• Customer service: Offer exceptional customer service to create a positive brand experience that encourages loyalty and word-of-mouth referrals.

How to come up with a name for your auto parts business?

Brainstorming is a great way to come up with a name for your auto parts business. Start by creating a list of words that represent the type of goods you plan to offer, and then consider combining certain words in creative ways to form your business name. Think of names that are catchy and memorable, which can help people recall it easily and make your business stand out. Additionally, be sure to research potential names to ensure they aren't already in use by another business. With a little bit of thought and creativity, you can come up with an original and memorable name perfect for your auto parts business.

Formalizing your business registration is a critical step in establishing a legitimate auto parts business. It involves legalizing your company with the relevant authorities, which can vary depending on your location. Below, you'll find the key steps you should follow to ensure your business is properly registered and compliant with all necessary regulations.

• Choose a business structure (e.g., sole proprietorship, partnership, LLC, corporation) that best suits your needs and obtain the necessary forms from your state's business filing office.
• Register your business name with your state government, ensuring it is unique and not already in use. If you plan to operate under a trade name or "Doing Business As" (DBA), file for that as well.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, which is necessary even if you don't have employees.
• Apply for any specific licenses and permits required for an auto parts business, which might include a resale permit, a business operation license, and environmental permits.
• File your business registration documents with your state's secretary of state or business agency along with the appropriate filing fee.
• Keep records of your registration confirmations and any identification numbers as these will be crucial for future business activities, including banking and taxation.

Resources to help get you started:

Starting an auto parts business involves various legal considerations, including obtaining the right licenses and permits. These ensure your business operates within the law and meets industry standards. Here’s a guide to help you navigate through this critical step:

• Research Local Requirements: Check with your city or county clerk's office for local business license requirements, as they vary by location and the type of products you'll be selling.
• Obtain a Business License: Apply for a general business license, which is necessary to legally operate your business in most municipalities.
• Specialty Permits: Depending on what auto parts you sell, you may need specific permits, such as those for selling hazardous materials (e.g., batteries, chemicals).
• Sales Tax License: Register for a sales tax license to legally collect sales tax on transactions in states where it applies.
• Zoning and Land Use Permits: Ensure your business location complies with local zoning laws, which may require additional permits if you're also performing installations or repairs.
• Environmental Licenses: You may need environmental licenses or permits if your business involves recycling parts or disposing of automotive fluids.
• Employer Identification Number (EIN): Although not a permit or license, obtaining an EIN from the IRS is essential for tax purposes, especially if you plan to hire employees.

What licenses and permits are needed to run a auto parts business?

The exact licenses and permits required to run an auto parts business depend on the location, as requirements vary from state to state. Generally, businesses are required to register with the Secretary of State, obtain an Employer Identification Number (EIN) through the Internal Revenue Service (IRS), obtain a local business license, and for certain types of businesses, obtain a Federal Tax ID. Additionally, many states and cities require additional permits or licenses. For example, some states require companies that work with hazardous materials to obtain specific permits.

Starting an auto parts business requires careful financial management, which begins with opening a business bank account and securing the necessary funding. A dedicated business account will help you manage cash flow, expenses, and revenues effectively. Here's how to proceed:

• Choose the right bank: Research banks to find one that offers favorable terms for business accounts, including low fees, convenient services, and good customer support.
• Prepare your documents: You'll need your business registration details, EIN (Employer Identification Number), ownership agreements, and possibly a business plan when opening an account.
• Explore funding options: Determine how much capital you need and consider various sources such as business loans, lines of credit, investors, or crowdfunding platforms.
• Understand the terms: Carefully review the terms and conditions of any funding you pursue, paying close attention to interest rates, repayment schedules, and any potential equity loss.
• Build relationships: Establish connections with financial advisors and lenders early on to help navigate financial challenges and opportunities as your business grows.

When setting pricing for auto parts services, it's crucial to strike a balance between being competitive and maintaining a profitable margin. Consider the value you provide, market rates, and your business costs. Here are some guidelines to help you establish your pricing strategy:

• Analyze the competition to understand the going rates for similar auto parts and services in your area.
• Factor in your costs, including procurement, labor, overhead, and desired profit margin, to ensure sustainability.
• Consider offering tiered pricing for different levels of service or product quality to cater to a wider range of customers.
• Be transparent with your pricing to build trust with customers; hidden fees can damage your reputation.
• Regularly review and adjust your prices based on market changes, supplier costs, and your business performance.
• Don't undervalue your services; be confident in the quality you provide and set prices that reflect that value.
• Implement strategic discounts or promotions to attract new customers and retain existing ones without undermining your pricing integrity.

What does it cost to start a auto parts business?

Initiating a auto parts business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $95000 for launching such an business. Please note, not all of these costs may be necessary to start up your auto parts business.

Starting an auto parts business requires careful selection of high-quality equipment and supplies to meet the needs of your customers. It's essential to source durable and reliable products that provide value for money. Here are some key steps to consider when acquiring the necessary equipment and supplies:

• Research suppliers: Look for reputable manufacturers and wholesalers who offer competitive prices and good customer service. Check reviews and ask for recommendations from other auto parts businesses.
• Inventory Management: Invest in a robust inventory management system that can track stock levels, reorder parts, and manage suppliers.
• Quality Assurance: Prioritize quality over cost-saving when it comes to parts that are critical for safety or performance. Consider offering warranties or guarantees to instill customer trust.
• Bulk Purchasing: Consider buying in bulk to save money, but balance this with the need to manage inventory and cash flow effectively.
• Tools and Equipment: Acquire the necessary tools for handling and testing auto parts, such as diagnostic machines, part cleaners, and storage systems.
• Shipping and Handling: Set up accounts with reliable shipping companies and invest in materials for safe packaging and dispatching of auto parts.
• Legal Compliance: Ensure that all the equipment and supplies meet industry standards and legal regulations to avoid penalties or liability issues.

List of software, tools and supplies needed to start a auto parts business:

• Automotive Parts Counter Software: $799 - $3,000
• Computer/Laptop: $200 - $1,000
• Barcode Scanner: $50 - $250
• Point-of-Sale System: $800 - $1,500
• Inventory Management System: $600 - $2,200
• Retail Accounting Software: $99 - $600
• Telephone System: $100 - $500
• Safe for Cash/Credit Cards: $100 – 300
• Office Supplies & Manuscripts Linked to Transactions (Receipt Paper & Printer): $50 - $300 < li >< b >Workstation/Desk and Chair Setup : $150 – 500

Securing the right insurance is an essential step in protecting your auto parts business from potential risks and liabilities. It provides financial coverage for various unforeseen circumstances that could otherwise have a significant impact on your business operations. Below is a guideline to help you obtain the necessary business insurance:

• Assess your risks: Identify the types of risks your business may face, such as property damage, theft, or liability for customer injuries.
• Research insurance providers: Look for reputable insurance companies or brokers that specialize in commercial insurance, particularly those with experience in the automotive industry.
• Understand policy options: Familiarize yourself with different types of insurance policies, including general liability, property insurance, workers' compensation, and product liability insurance.
• Compare quotes: Obtain quotes from multiple insurers to compare coverage options and premiums. Make sure to understand what is and isn't covered under each policy.
• Consider additional coverage: Depending on your specific business needs, you may require additional coverage such as business interruption insurance or commercial auto insurance.
• Review and purchase: Carefully review policy details and choose the insurance that best suits your business needs. Keep all documentation for future reference.
• Stay compliant: Ensure your insurance meets any legal requirements in your area and renew policies as needed to maintain continuous coverage.

Marketing your auto parts services is crucial for attracting customers and establishing a foothold in the competitive automotive market. A well-rounded marketing strategy involves both online and offline methods to reach a broad audience. Here are some effective ways to begin marketing your auto parts business:

• Develop a Strong Online Presence: Create a professional website and engage with customers on social media platforms. Use search engine optimization (SEO) to improve your website's visibility in search results.
• Offer Promotions: Launch promotions, discounts, and loyalty programs to encourage first-time buyers and reward repeat customers.
• Networking: Attend automotive industry events, trade shows, and local car meets to network with potential clients and business partners.
• Partnerships: Collaborate with auto repair shops, dealerships, and car clubs to offer exclusive deals and increase referral traffic.
• Local Advertising: Utilize local newspapers, radio stations, and billboards to reach potential customers in your area.
• Email Marketing: Collect emails from interested visitors and send them newsletters, product updates, and personalized offers.

Once you've established a solid foundation for your auto parts business, it's time to consider expansion to meet the growing needs of your customer base and stay ahead of the competition. Expanding your business requires strategic planning and execution. Here are some key steps to guide you through this exciting phase:

• Diversify Your Inventory: Broaden your range of auto parts to cater to a wider variety of vehicles, including both common and niche markets.
• Explore Online Sales: Set up an e-commerce platform to reach a larger audience and offer convenience to your customers.
• Open Additional Locations: If demand justifies it, consider opening new stores in strategic locations to tap into new markets.
• Offer Franchising Opportunities: Franchising can be an effective way to grow your business with reduced direct management responsibilities.
• Strengthen B2B Relationships: Forge partnerships with repair shops, dealerships, and fleet operators to secure bulk sales and recurring business.
• Enhance Customer Service: Invest in staff training and technology to provide exceptional service, encouraging repeat business and referrals.
• Participate in Trade Shows: Attend or exhibit at automotive trade shows to network, learn about industry trends, and promote your business.

• PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
• EDIT Edit this Article
• EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
• Browse Articles
• Learn Something New
• Quizzes Hot
• This Or That Game New
• Train Your Brain
• Explore More
• Support wikiHow
• About wikiHow
• Log in / Sign up
• Finance and Business
• Business by Industry
• Automotive and Transportation Businesses

How to Start a Used Auto Parts Business

Last Updated: April 1, 2024 Approved

This article was co-authored by Jay Goninen . Jay Goninen is an Automotive Expert and the Co-Founder and President of WrenchWay. Jay started working in his family's repair shop when he was nine and has been deeply passionate about the industry since then. He has experience as a technician and is currently a Board Member for both the Diesel Technology Program at Madison Area Technical College and the Community Alliance for the Skilled Trades. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, several readers have written to tell us that this article was helpful to them, earning it our reader-approved status. This article has been viewed 248,537 times.

Starting a used auto parts business can be an excellent way to make money and prevent older car parts ending up in landfills. In addition to helping the environment, you can assist people who cannot afford brand-new car parts to keep their cars in working condition.

Planning for Your Used Auto Parts Business

• Do an internet search, look in the local phone book, and pay close attention to advertisements on local television to identify similar businesses in your area.
• Account for the size and population of your city and compare that to the geographic location of existing used auto parts businesses.
• Used auto parts businesses are more likely to thrive in lower income areas, as wealthier segments of the society generally don't buy used auto parts as often.

• Your specialty areas may be in imports, exports, motors, or bodywork. Do some research to determine what area can work for your business.
• A used auto parts business can be particularly lucrative if you provide rare or hard to find parts for more obscure vehicles. [1] X Research source
• In your business plan, be sure to account for all costs and expenditures related to the business, project realistic sales goals, design a plan to reach new customers, identify potential demographic segments of the community who will utilize your services, and plan for the growth potential of your business. Be sure outline where and how you expect to generate the necessary capital to get your business off the ground and to ensure that you can expand when needed. [2] X Research source

• Most states require a license for businesses that buy, restore, recycle, and resell used car parts.

• You will need a location that is big enough to house and properly catalog a variety of used parts for all the makes and models of cars you cater to. [5] X Research source
• Hire employees. If you are looking to open a used auto parts business, chances are that you have at least rudimentary knowledge about cars and how they work. However, you will likely need a licensed mechanic in your business to help refurbish old parts and identify parts that have potential resale value. Posting an add in local newspapers or on job search websites can help you find potential candidates for employment.

• Identifying the parts you need and where to find them depends largely on your business plan. Your business may choose to focus on providing parts for rare vehicles not in production anymore, as these will be in high demand among a small segment of the population. Alternatively, you may choose to specialize in providing parts for very common vehicles in an effort to expand your potential sales base.
• Try finding these parts in junkyards, from cars sold at salvage auctions, or contact insurance agencies to try to purchase "scrapped" cars from them at a discounted price.
• As a used auto parts business owner, you will need to educate yourself on the mechanics of how a car operates in order to find the right parts. Also, be prepared to test the parts you find to know if they are still operational or can be refurbished to become operational again.

Running Your Used Auto Parts Business

• Insurance companies may be willing to sell you parts of a vehicle to recoup some of their money, especially when selling the entire vehicle is not a practical option.

• Offer to take the old parts from your customers who purchase their used parts from you. You may be able to salvage car parts, refurbish them for a low cost, and place them back on your shelf.
• You could also consider offering a discount to customers who bring “trade-in” parts to your business.
• Consider selling online. When you deal with very specific parts for specific vehicles, you may find that no one in your immediate area will need the parts you are offering. As a result, it is wise to consider listing your inventory online to reach a much wider customer base. If you do choose to sell parts online, you need to account for the cost of packaging, shipping and handling in your prices and business model.

• Paying employees and staff (if necessary) [6] X Research source
• Paying rent or mortgage on your business' property [7] X Research source
• Paying bills, like electric, water, and gas, that are necessary to your business' operations [8] X Research source
• Paying property taxes and insurance [9] X Research source
• Advertising costs [10] X Research source

Expert Q&A

You Might Also Like

Expert Interview

Thanks for reading our article! If you’d like to learn more about starting an auto business, check out our in-depth interview with Jay Goninen .

• ↑ http://www.entrepreneur.com/businessideas/automotive-used-parts
• ↑ https://www.findlaw.com/smallbusiness/starting-a-business/tips-for-a-successful-small-business.html
• ↑ https://www.tdlr.texas.gov/parts/aprfaq.htm#employee
• ↑ https://www.entrepreneur.com/businessideas/automotive-used-parts
• ↑ https://www.bizfilings.com/toolkit/sbg/startup/financing/figuring-costs-of-running-new-business.aspx

About This Article

To start a used auto parts business, develop a thorough business plan that outlines your budget, inventory, marketing strategies, and the areas you plan to specialize in. Choose a good location for your business and obtain any licenses, permits, and insurance required by law to sell to the public. Then, find a few good suppliers, stock your shelves with merchandise, and get the word out about your store to attract customers! For tips on monitoring your inventory, read on! Did this summary help you? Yes No

• Send fan mail to authors

Reader Success Stories

Mutebi Richard

Mar 24, 2018

Did this article help you?

Daphine Masina

Jul 9, 2017

Sangay Thinley

Nov 5, 2017

James Medard

Mar 6, 2018

Sipho Msimanga

Mar 7, 2019

Featured Articles

Trending Articles

Watch Articles

• Terms of Use
• Privacy Policy
• Do Not Sell or Share My Info
• Not Selling Info

Get all the best how-tos!

Sign up for wikiHow's weekly email newsletter

Colombia - Automotive Parts Colombia - Automotive Parts

• Brake fluid
• Transmission shafts, bearings, gears
• Tires for small vehicles, trucks and buses
• Tire retreading equipment
• Tire recycling operators
• Engines and engine parts
• Insulated wire, cable
• Electrical parts
• Electric vehicles could be a growth area, especially in public transportation. Such vehicles would have to have the requisite power to climb steep hills at high elevation while full of passengers. The local public transportation companies located in Medellin, Cali and Bogota are in the process of renovating their fleets, and they are considering including electric busses. The cities need to comply with regulations to reduce air pollution.  
• The Colombian Central Bank continued to cut short term interest rates in 2018, a measure that may encourage commercial banks to lower auto loan rates [13] . There are also signs that consumer confidence is rebounding after the national Value Added Tax was increased from 16 percent to 19 percent in January 2017.
• A. The high number of vehicles imported into Colombia represents a good opportunity for imported parts and spare and replacement parts and accessories, especially for U.S. products that are well known and regarded. Additionally, under the United States-Colombia Trade Promotion Agreement (TPA), some parts and auto parts (which were previously assessed an average tariff of 13 percent) currently enter the Colombian market tariff free, while tariffs on other parts will be reduced to zero over the next two to five years.
• With the implementation of the TPA, Colombia is accepting re-manufactured auto parts listed under Chapter Four, Rules of Origin and Origin Procedures, Section A - Rules of Origin, ANNEX 4.18. Goods classified in the following Harmonized System subheadings may be considered remanufactured goods that would be allowed to be imported into Colombia: 8702, 8703, 8704.21, 8704.31, 8704.32, 8706, and 8707, 8408.10, 8408.20, 8408.90, 8409.91, 8409.99, 8412.21, 8412.29, 8412.39, 8412.90, 8413.30, 8413.50, 8413.60, 8413.91, 8414.30, 8414.80, 8414.90, 8419.89, 8431.20, 8431.49, 8481.20, 8481.40, 8481.80, 8481.90, 8483.10, 8483.30, 8483.40, 8483.50, 8483.60, 8483.90, 8503.00, 8511.40, 8511.50, 8526.10, 8537.10, 8542.21, 8708.31, 8708.39, 8708.40, 8708.60, 8708.70, 8708.93, 8708.99, 9031.49.
• The country is currently formulating policies to allow importation of remanufactured products to meet commitments under the TPA with the United States.
• Other provisions of the TPA include strong protection for U.S. investors (legal stability), expanded access to service markets, greater intellectual property rights protection, market access for remanufactured goods, increased transparency and improved dispute settlement mechanisms (arbitration). Under the National Treatment caveat within the TPA, U.S. companies must be treated as locals when they participate in public bids, eliminating the disadvantage they used to face prior to the signing of the agreement.
• B. The Government of Colombia announced that as of August 6, 2014 (Decree 2910, 2013), it would eliminate tariffs on imports of raw materials and inputs for the automotive sector (manufacture of auto parts and vehicle assembly in Colombia), under the condition that they are not produced in Colombia. This decision was part of the Program for the Promotion of the Automotive Industry (PROFIA, by its Spanish acronym), which considers this sector key to the country’s industrial development. The argument in favor of this incentive centered on the technology transfer effect of the automotive industry in terms of human capital formation and entrepreneurial learning, which are often transferred to other manufacturing sectors of an economy [14] . 
• C. Automotive parts for electric vehicles is also becoming a trend. For example: engines for heavy duty trucks.
• Freight and passenger transportation companies
• Government agencies
• Other end users: rental car and limousine companies
• Repair and maintenance shops
• Service stations, gasoline dealers and lubrication centers
• Dealers and distributors of imported vehicles
• eCommerce sites that sell auto parts to end users (a relatively new channel of distribution in Colombia)
• Importers and distributors of automotive parts and accessories
• Sales representatives of automotive parts
• Tire distributors

More Information

Colombia - automotive parts, pick a board, create a board.

Owner: Trade Community Site Guest User

Create   Cancel

Business Plan for Investors

• Bank/SBA Business Plan
• Operational/Strategic Planning Services
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB-1 Business Plan
• EB-2 NIW Business Plan
• EB-5 Business Plan
• Innovator Founder Visa Business Plan
• Start-Up Visa Business Plan
• Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Plan
• Landlord business plan
• Nonprofit Start-Up Business Plan
• USDA Business Plan
• Cannabis business plan
• Ecommerce business plan
• Online boutique business plan
• Mobile application business plan
• Daycare business plan
• Restaurant business plan
• Food delivery business plan
• Real estate business plan
• Business Continuity Plan
• Pitch Deck Consulting Services
• Financial Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Auto Parts Store Business Plan Sample

SEPT.23, 2013

Do you want to start Auto Parts Store business plan?

Are you looking to learn how to open auto part store? The business can be a great investment if you have a basic understanding of different kinds of automobiles and their part requirements. Starting an auto parts business is relatively simpler as it doesn’t require abundant resources.

The business management side is also relatively easy as you can start it on a small scale. There isn’t a need to have a huge team or a large shop to start up the business initially. This can significantly benefit you if you are new to management and business.

You can also easily draft up an ecommerce startup business plan for your business. As a guide you can look at related plans such as convenience store business plan . For a better reference, you can take help from this automobile parts business plan.

Executive Summary

2.1 the business.

Best Rev will be an auto parts store owned by Sheldon Cooper in Manhattan. The primary aim of the business will be to reduce the hassle of vehicle owners by providing them best condition spare parts for their automobiles. The business will offer a wide range of services and products for the ease of its customers.

2.2 Management of Auto Parts Store

If you are just learning how to start an auto parts business , the best advice you will find is to establish strong management. You can have good management through adequate planning. And there is no better way to plan out every aspect of your store than through an auto parts store business plan pdf like the one presented here.

You can also take aid from relevant business plans like used auto parts business plan or an auto dealership business plan .

In this business plan motor parts shop example, we will guide you about all the components of a strong business plan. Of course, you can alternatively also hire business plan experts to do this work for you.

2.3 Customers of Auto Parts Store

The customers of Best Rev will belong to all classes, and work domains as vehicles have become a fundamental part of life for a majority of the world’s population. The recurring customers of the business will be:

• Personal Vehicle Owners
• Private Dealerships
• Professional Racers
• Cargo Vehicle Businesses

2.4 Business Target

The main aim of Best Rev is to become a reliable and trustworthy source of good auto parts and maintenance services among its customers.

The financial targets that the business wants to achieve within the first five years are mentioned below:

Company Summary

3.1 company owner.

Best Rev will be owned and operated by Sheldon Cooper. Sheldon completed his Bachelors in Mechanical Engineering two years ago, after which he pursued an engineering position in a noteworthy motor company. However, six months ago, he left the post to fulfill his lifelong passion of starting his own automobile parts and maintenance store.

3.2 Why the Auto Parts Store is being started

Sheldon noticed that Manhattan experiences a lot of traffic, but there are no auto shops or parts stores located in the area or anywhere in the 15-mile radius. Here, he saw the opportunity to cater to vehicle owners of Manhattan and the nearby regions. The result was Best Rev, an auto parts store that deals with the maintenance and repair of vehicles and the provision of spare parts.

3.3 How the Auto Parts Store will be started

Step1: Plan Everything

Good planning is the most crucial step when learning how to start a car parts business. The best aid in planning and managing a business is its business plan. To write your vehicle spare parts business plan, you can take help from this automobile spare parts business plan. Best Rev is an automobile spare parts shop, for which the business plan is detailed here. You can take help from this example or go through other examples like used car dealership business plan to get an idea of what to include when planning for a start-up.

Step2: Define the Brand

What comes next is to highlight your business and its unique propositions. This can be achieved by creating a brand around your business idea. This will include everything from the principles it follows to its unique value above its competitors. This will introduce a good image of your business to your customers and also help you create a space for yourself in the market.

Step3: Establish Your Corporate Office

The next step is to manage the physical aspect of the business. Sheldon decided to rent out two back-to-back small shops in the main Manhattan commercial area. He decided that one of these shops would be the face of the business where all dealing will customers will take place. All the spare parts will also be stored in this area. In contrast, the other shop will be used to maintain and repair vehicles.

Step4: Establish a Web Presence

Establishing a web presence is integral in today’s market. Therefore, Sheldon decided to develop a website for the business and social media presences for marketing.

Step5: Promote and Market

The final step is to develop a good marketing plan and stick to it.

Before you start an auto part business, you need to decide on your business’s services to your customers. You may have many auto parts business ideas, but you can’t implement everything in the business initially. Therefore, you have to pick and choose what you will start with.

You can follow this guide on how to start an auto parts business to figure out what the market for the business looks like and what services are ideal to be included in your start-up.

The series of steps to follow can be confusing when learning how to become an auto parts distributor. Therefore, we have described everything here in detail. Since Sheldon started with a variety of services, this format can be used to develop even a flower shop business plan .

• Spare Parts Distribution

Best Rev will sell spare parts for all kinds of automobiles as its base service. As a result, most of the auto parts in demand will be readily available, while there will also be an option for customers to order the parts custom to their vehicle.

• Maintenance

In addition to providing spare parts, Best Rev will also offer maintenance services to its customers. This will include

• Engine Check
• Break and Battery Fluid change
• Thorough cleaning of the engine
• Repair Services

The customers of Best Rev can also bring their vehicles to the store to get any part fixed. In addition, the business will have mechanics available at all times who will deal with any problems a vehicle might have.

• Cleaning Service

Our last service will be the cleaning service. Our customers can bring their vehicles and get them serviced and cleaned in just 20-40 minutes, depending on vehicle type.

Marketing Analysis of Auto Parts Store

When starting an auto parts business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your automobile spare parts business plan pdf. This analysis should look into the past, present, and future market trends for you to make the best choices.

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Your automobile parts business plan should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for your own products and services.

If you don’t know what to include in your motor vehicle spare parts business plan, then you can take help from the document here. Also, if you are having difficulty conducting a marketing analysis, you can look at the marketing plan of this business plan motor parts shop.

5.1 Market Trends

According to IBISWorld, the auto parts industry holds a market size of $66 Billion in the United States, employing almost 400 thousand people. The industry is continuously in demand as more and more people adopt automotive vehicles in their life. So, opening a business in this industry is a very smart move as the demand will only get bigger.

5.2 Marketing Segmentation

The potential customers of Best Rev will be as follows:

5.2.1 Personal Vehicle Owners

The primary customers of Best Rev will be people who own cars for personal use. As a majority of the population of Manhattan owns cars, our business will expect these customers to be quite regular. They are expected to avail maintenance and cleaning services most often.

5.2.2 Private Dealerships

Our second target customer will be private dealerships looking to fix up cars and sell them. We will provide them with the spare parts and maintenance services required.

5.2.3 Cargo Vehicle Businesses

Due to the vast amounts of construction being carried out in Manhattan and surrounding areas, we expect our third most frequent customers to be cargo vehicle businesses looking for spare parts, maintenance, and cleaning services.

5.2.4 Professional Racers

Our final customer group will be professional racers. They are expected to avail our spare parts and maintenance services, although not that often.

5.3 Business Target

• To become the most reliable distributor of spare parts across Manhattan
• To provide quick services to our clients
• To earn a net profit of $40k/month at the end of three years
• To keep itself in the good graces of customers.

5.4 Product Pricing

Our prices will be economical compared to our competitors since they won’t pay extra shipping fees for spare parts.

Marketing Strategy

To gain attention in the market among your competitors, you need to highlight your competitive advantages. This is crucial in developing a business, especially an online auto parts business.

You can market what makes you unique in the industry through a solid marketing plan. A market plan will not only allow you to bring light to your strongest features, but it will also help you in learning how to become an auto parts distributor in a saturated market.

So, if you want to develop a strong marketing strategy for your business, you can take help from this motor parts business plan pdf. You can also look at other business plans such as skateboard store business plan to understand how to build a marketing strategy.

6.1 Competitive Analysis

• We have quick customer care services. We respond to customer queries efficiently.
• We have a fast turnaround time as we take customer orders and requests and fulfill them as soon as possible.
• We have excellent customer support staff that guides our customers in choosing the best parts for their vehicle and their budget.
• Through our 24/7 online services, customers can peruse the parts available at the shop or order them on request.

6.2 Sales Strategy

• We will advertise our services through social media platforms like Instagram and Facebook.
• We will offer a 25% discount on our first 25 purchases.
• We will offer significant discounts to our regulars.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

There are a lot of auto parts stores in the world. But only those are popular that make customers happy and satisfied. The success of a business, especially in the automobile industry, depends not only on the quality of parts but also on the customer support staff.

Understanding this importance, Sheldon included some essential features as a part of employee hiring criteria in the automobile spare parts business plan. He also formed a list of employees necessary for running his business. This list can be seen in this auto parts store business plan sample.

7.1 Company Staff

• 1 Receptionist
• 3 Cleaners/Servicers
• 4 Mechanics
• 1 Social Media Strategist and Manager
• 1 Web Developer

7.2 Average Salary of Employees

Financial plan.

You can’t ensure the success of an automobile parts business through just sales. You need to ensure that all the resources are efficiently managed so that your business doesn’t go into a loss.

You can prevent your business from losing resources by developing a financial plan as a part of your motor spare parts business plan. This will include the costs associated with your business’s essential aspects, such as an auto parts franchise cost. In addition, it will analyze where you are spending your money and how you are earning to keep everything in balance.

Here, we are describing the details of the financial plan of Best Rev.

You can also look at a business plan for e-commerce to get a good idea of managing business finances.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

1. How to start an auto parts store?

You can start an auto parts store by developing a good auto parts store business plan.

2. How to open an auto parts store?

For starting an auto parts store, you will need to rent or buy a physical space and create management plans.

3. How to start an online auto parts business?

To start an online auto parts business, you will need to manage your business finances and develop a strong marketing plan. Furthermore, you will need to establish social media presence as well.

Download Auto Parts Store Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Add comment

E-mail is already registered on the site. Please use the Login form or enter another .

You entered an incorrect username or password

Comments (2)

Thank you for your comment. If you need assistance in writing your business plan please contact us by email: [email protected] or call us at USA +1-619-727-5304, UK +44-203-318-1069, Canada +1-613-699-7822, Australia +61-385-956-735.

Thanks for your feedback.

mentioned in the press:

Search the site:

OGScapital website is not supported for your current browser. Please use:

• Learning Resources  |
• LOGIN/SIGN UP    |

19 Sep 2018 Posted By: Mudit Handa

How to set up Business in Export of Automobile Parts from India

Undeniably, a unique Import Export Code is a key to access the global market where you can truly find a plethora of lucrative opportunities in the name of your business.

As we all know, the export promotion has been the key drive of the Indian government ever since independence. In the recent years, the trade & commerce authorities have undertaken numerous initiatives and schemes in order to shore up the exports from India. All exim trade corporations across India can easily access those schemes with a unique Import Export Code registration.

#1. How about exporting Automobile equipment?

No doubt, it can be truly a great idea to begin your venture in exporting of genuine Automobile spare parts. As a matter of fact, Automobile equipment ranks 8th in the list of top 10 largest exports from India, with the total value of exports amounting to $4.4 billion (₹318.5 billion). If you can really excel in the export of Automobile spare parts & accessories, it can be an opportunity for life.

#2. How to begin export-business in Automobile equipment?

Given below are the steps to begin export trade in automotive spare parts:

• Incorporation : To start a venture in the export of automobile parts, you first need to establish your entity as a sole proprietary firm, partnership firm or through a company formation. Evidently, you must select a catchy name for your venture.
• Opening bank account : Next is to open a bank account in your business name with a bank authorised to deal in forex.
• PAN registration : Every exporter needs to obtain a PAN card in the business name. For this, you need to go for PAN registration .
• GST registration : obviously, an exporter is required to have a valid tax registration. And for that, you definitely need a GST registration .
• IEC registration : Here comes the most integral part, i.e. the IEC registration process. Undeniably, an Import Export Code is the key to launch your product in the global market.
• Certificate of origin : this document that validates the origin of the goods imported in any country.
• Market identification : Next you need to find the best market for your product. In case of auto parts, this will depend upon which vehicle parts you wish to export and from which company. Broadly, Germany, US, Japan, China and South Korea are among the  best avenues for auto parts exports.
• Technical conformities : Of course! You need to be prepared with the required Technical benchmarks and regulations for your auto parts. For instance, ISO certification 16949 is necessary if you are engaged in the automotive industry.

#3. How to deal with the importers?

The next stage is of dealing with your buyer. This should be undertaken cautiously. You have to begin with the process of pricing & costing. Following parameters are to be considered while costing-

• Manufacturing cost
• Packaging cost (individual & bulk)
• Financing cost
• Promotional expenses
• Documentation & legal expenses
• Transportation & freight
• Taxes & custom duties

The pricing will be done by adding your profit margin to these costs.

Know the of your product.  

#4. What is the rate of import duties on Automobile spare parts in India?

The import duties prevalent in India on Automotive spare parts are as below-

• Basic Customs Duty: 10%
• Countervailing Duty (CVD): 12%
• Special CVD: 4%

With that, you can easily begin your exports in the field of Automotive equipment.

In case you need any guidance on online IEC Registration , feel free to contact us at 8881-069-069.

So it's 26% import duty for auto parts. For a product of ₹ 100 it will be ₹ 126 . Again have to pay GST for sales.

Exactly Mr. Varghese. However, you need not pay IGST on exports if you file an LUT.

Additionally, you need to consider the import duty only if your intent is the import of Automotive equipment.

is there any export duties for exporting cars ??

Give a Reply

Blogs Categories

• Company Formation
• Import Export Code
• ISO Standards
• Intellectual Property Rights
• Startups & MSMEs
• Tax Updates
• GST Return Filing
• MSME Registration
• FSSAI Registration
• Annual Compliance
• Income Tax Return
• APEDA Registration
• ESI registration
• LLP registration
• NSIC Registration
• Barcode Registration
• EPF Registration
• Trademark registration
• Union Budget 2020

Need help ? Arrange a call from business advisors

01 Jan 1970 Posted By: E-StartupIndia

How is IEC code important for exporter importer business

Import and export business is a very common and hot term in the world of business. This is the sector, which allows your business to grow rapidly and increase your global reach. Import and export also increase the economic infrastructure of a country by raising the Gross Domestic Product (GDP). There are some criteria and procedures which are mandatory for the importer-exporter business. One of

Required documents for import export code registration

Import and export industry has rightly been described as one of the pillars of a country's economy. Along with several other benefits, import and export industry unlocks your reach to the international Markets and makes you more compliant with legal standards of business. As per the government instructions, IEC code or the Import Export Code is the fundamental registration requirement for any

Government revises Custom duty in Budget 2018

There is no doubt that the Government has yet again left no stones unturned in exuding its developmental agenda in its 5th Union Budget that was passed yesterday. Since its first budget in 2014, the government has sought to augment the level of ease of doing business by giving a wide elbow room for foreign investments.   In its 5th and arguably most decisive budget, the government ha

Government brings measures to enhance Indian exports

The fact can never be denied that for any nation to attain the desired model of economic growth, the emphasis must be on the import substitution and export promotion. Evidently, the government has been keenly devoted to the realization of this goal and giving enough fillip to the overall exports, right from its first budget in 2014. In its most recent Union Budget, the government has wholeheart

Gujarat High Court voices against the existing legal complications in import-export trade.

International trade is not only a money-spinner for any country’s economy; it’s a conduit for interlinking of cultures. Thus, the laws governing the realm of import-export trade must be unproblematic and smooth for seamless trade and commerce across the seas. In this regard, there is always a need to amend or annul the pre-existing laws that pose a hindrance to the normal course of int

Government peps up export promotion by enabling online filing of Letters of Undertaking

GST Registration has indeed arisen as a way out to all the despair that existed in the erstwhile tax regime. Through removal of superfluous ambiguities and liabilities, GST has emerged as the inimitable tax policy to redress all the complications of trade. Considering its significant contribution to the escalation of India’s GDP, the government is all set to implement the GST tax policy as a

CBEC sheds light on the GST applicability on the mutual services in a Joint Venture

Undeniably, the GST registration has emerged as a solution to abridge legal as well as financial exigencies for all business forms, enhanced mobility of goods and has simplified the tax liabilities. All in all, it has augmented the ease of doing business in India. However, the fiscal reforms are still underway as regards certain business forms where the ultimate boon of GST is yet to be accomplish

26th GST council meeting: A mingle of advances and adjournments

The government has yet again paced up the reforms under GST with no significant alteration in certain aspects. In the 26th GST council meeting that was held over Video Conferencing on 10th March 2018, the government has given green signal to some laws that were hitherto on hold. The council has lastly promulgated the final date for roll-out of E-Waybill, i.e. April 1.   Th

Why 70% of exporters� refund claims still stuck even after 8 months of GST regime?

No economic reform has been as drastic and sweeping in the history of independent India as the advent of GST. No doubt, today GST registration assists millions of small and medium scale entities by simplifying the compliances and mitigating the surmounting tax liabilities that hindered the progress of small businesses in India.   Despite numerous measures supportive of export promotion

How will LOU Ban affect the Import Export trade?

This can probably be deemed as the second most radical step by the central bank after the demonetization move in 2016. As an ad hoc policy measure, the Reserve Bank of India has barred all the commercial banks from issuing Letters of Undertaking (LoUs) to the borrowers. Apart from that, the issuance of the Letters of Comfort has also been banned with immediate effect. The decision that really s

Supreme Court extends the due date for Aadhaar-linking to PAN Card & Social Welfare Schemes

The online linking Aadhaar to personal information has been a matter of tumult these days as there has been much fickleness from government end regarding this issue. However, the government has finally proclaimed the final due dates for the interlinking of Aadhaar number with the PAN Card and social welfare schemes run by government, mobile and banking services, for all those citizens

Which goods are to become cheaper and costlier in FY-2018?

Knock-knock! The new fiscal year 2018-19 has almost rung in! And with that, the much evident economic changes introduced in this year’s Union budget are all set to be implemented. Among the hottest updates that were read aloud at the parliament were those that were related to the drastic changes in the customs duties that would substantially alter the prices of various goods. There is no

How has the GST Department managed to clear ₹7K crore GST refunds in just 9 days?

It is no hyperbole that our nation is all set to witness a sort of fiscal revolution. Unquestionably, the all-new era of the Goods and Service Tax regime is the precursor of this fiscal revolution, as can be clearly perceived from the massive GST collections and increase in the compliance rate. There is no doubt that the new indirect tax regime had marked its genesis on a very weak fiscal foundati

What role does GST play in today's Era of Drop Shipping Business?

  The advent of the 21st century has ushered in the era of globalisation and has broken away all the trade barriers by transformation of all industries through the e-commerce platform. No wonder the techno savvies have been always ahead in this fray, the complex jargon has been a hindrance for many laymen. One such term that is being used very often these days in the realm of e-commerce tr

What amendments have been by DGFT in the IEC registration process?

It is quite a palpable fact that an Import Export Code is not only an essential requirement for stepping into the international market and import and export trade, it is also the key to have a competitive edge over the fellow market players. Doing business internationally evidently gives a distinguished status in the local market. It allows the small traders and MSMEs to have a direct access t

Why has Safeguard Duty been Suspended on Solar Panel Imports?

Expansion of business at global interface definitely gives a prominent status in the domestic market. It assists the small traders and MSMEs to have a direct access to the global opportunities. There is no doubt that a unique Import Export Code can fetch you lucrative business opportunities in the name of your business on the global platform. The trade & commerce authorities have so far

Government imposes Anti-dumping Duty on imports of Flat Base Steel Wheels

An opportunity to globally expand your venture can let you have an edge over others. Besides, it assists in the export promotion that further reinforces the nation’s economy by equilibrating the balance of trade.   Evidently, a unique Import Export Code lets you easily plunge into the global arena where you can find a sea of opportunities to enhance your business growth.  

Undeniably, a unique Import Export Code is a key to access the global market where you can truly find a plethora of lucrative opportunities in the name of your business. As we all know, the export promotion has been the key drive of the Indian government ever since independence. In the recent years, the trade & commerce authorities have undertaken numerous initiatives and schemes in order t

Why the Government has hiked import duty on 19 items?

Conducting business internationally not only gives a distinguished status in the local market, besides it assists the budding entrepreneurs and MSMEs to grab the global avenues for business expansion and growth. This further helps in export promotion and boosts the nation’s economy. Evidently, with a unique Import Export Code, one can seamlessly grow your business at the international pl

What is the Concept of Deemed Exports in GST?

It is beyond any doubt that the apex body to assess and mitigate various issues with respect of Goods & Service Tax, i.e. the GST council has always formulated and duly brought into effect all the required indirect tax reforms in their regular meetings. In this regard, the GST provisions have been regularly amended or changed so as to make them more viable and feasible in all the spheres of th

CBIC amends CGST Rules to enable exporters claim IGST Refund

It can’t be negated that the supreme authority to administer and resolve various perplexities regarding Goods and Service Tax, i.e. the GST council has dependably drafted and properly executed all the fundamental growth-oriented reforms in their frequent meetings. Moreover, the GST laws have been repetitively altered or amended in order to make them more practical for various areas of the ec

No IGST on the supply of services to Nepal & Bhutan?

It is beyond any contradiction that the provisions under the GST laws have been consistently reworked or modified in order to make them more favourable for different sectors of the economy. These reforms have altogether eased the burden and complexities of the average taxpayers as well as the tax authorities. According to section 2(6) of CGST Act-2017, any supply of services shall be conside

CBIC gives clarification over the certain issues of IGST refunds

We all are aware that in the current scenario of GST, one of the major issues that are affected a large number of taxpayers is of GST refund claims. Evidently, the exporters are increasingly claiming their refunds of IGST that they had incurred on the exports they had conducted. A large amount of IGST refunds that are being claimed by the exporters are in relation with the period of exceeding

Government widens Rectification Facility for Shipping Bills to ease IGST Refunds

It is beyond doubt that in the present situation, a large number of exporters are struggling to claim the refunds of IGST that they had incurred on the exports they had carried out. These IGST's refunds are identified with the time of over a year since the presentation of the GST regime in India. It has been clearly perceived by the GST authority that the exporters who have the GST regis

15 Things to know while claiming Input Credit of GST on Capital Goods

One of the most complex issues that have caused much uncertainty for a normal taxpayer is of claiming the refunds of IGST that has been incurred on the exports of the goods. Most of these IGST refunds are in relation with the period exceeding one year since the presentation of the GST regime in India. In this context, the CBIC had passed the CGST (12th Amendment) Rules 2018 to make the process

PM Modi Ji promises ₹ 1 Crore Loan to MSMEs within 59 minutes

It can never be negated that the upliftment and overall development of the small businesses in India have been the key drive behind Startup India initiative of our government. In a bid to the grant the Indian Micro, Small and Medium Enterprises easy accessibility to loans and to boost their overall development, the Honorable Prime Minister of India Sh. Narendra Modi has given a great Diwali Gi

What is the revised procedure of availing GST refund

The fact is truly undeniable that the GST authorities have left no stones unturned in making the provisions under Goods & Service Tax regime as convenient as possible by drafting and implementing all the necessary reforms with respect to GST registration and GST return filing procedure. Moreover, the tax GST authorities have also made frequent modifications in the GST portal so as to make diff

What are the 6 Changes made in E-way Bill Generation System?

As the nation is heading towards a fast-track mechanism for inter and intrastate consignment of goods through the E-way Bill system, traders are coming across certain glitches at various stages of goods transit. These technical glitches are related to the E-way Bill generation, the validity of the  E-way Bill and GST invoicing procedure. In a bid to rule out all such unnecessary hindrances

Government enforces Revised All Industry Duty Drawback Rates

The government has so far never undermined the goal of export promotion in India. The efforts of the government have been always to boost trade & commerce. In the interest of the exporters, the government has repeatedly amended the customs duties, countervailing duties and anti-dumping duties. The main intent behind such policies has always been to regulate the export-import trade. In a bid

31st GST Council Meeting: GST Refunds to get Faster & Easier

It is beyond any doubt the recently held 31st GST council meeting has sought to eliminate many uncertainties from minds of general taxpayers having GST registration. And the GST authority has undoubtedly played it well by introducing a number of relaxation for the taxpayers as well as the merchants who have GST registration, by way of implementing several rate cuts on many goods and services.

Government to Raise Import Duties on Iron Ore

The government has always aimed to counterbalance the factors adverse to the domestic as well as foreign trade by introducing key changes in tariffs as well as duties. In an effort to minimize the current account deficit (CAD), the government on 26th September 2018 had hiked the basic customs duty on 19 items that were classified as “non-core goods”. Some of them were electroni

India imposes 200% Customs Duty on Imports from Pakistan

India has recently witnessed a cowardly terror attack in Pulwama. The whole nation is grieved with the decease of 44 Jawans in the Pulwama region of J&K. The entire atmosphere is heated up due to the sad demise of CRPF jawans and constant demand from the agitated citizens for a concrete action to end terrorism. The Indian government has started off with some noteworthy restrictive diplomat

All you need to know about AD Code in Export

Today, every entrepreneur wishes to venture into the global market to expand his business. Undoubtedly, export promotion is a sign of the nation’s economic growth and is, therefore, a key drive of our government. However, for stepping into the world of Exim trade, one has to fulfil certain essential documentation as well as legal compliance. The import-export code is a passport f

5 Key Benefits of Udyog Aadhaar MSME Registration

MSMEs are indeed the precursors of economic growth in today’s globalized era. They account for over 99% of corporate taxpayers of India. Government has run several schemes for empowerment of the MSME sector due to its imperative role in the country’s economic growth. Very importantly, the key to access all the developmental avenues for MSMEs is the Udyog Aadhaar MSME Registration.

Corporate Tax Rates Slashed for Domestic Companies

Undoubtedly, it’s the gala time for India Inc. as the government has recently announced the reduction in the Corporate Tax Rates for the Domestic Companies and the newly established companies in the manufacturing sector.  The government has taken this step so as to draw in fresh investment in the Indian manufacturing sector and to boost the 'Make in India' drive. The substant

How to Change the Address in the Import Export Code?

Undeniably, a unique Import Export Code serves as a key to enter into the international trade, where you will be able to access a wide plethora of profitable growth opportunities in the name of your business. It is well known that export promotion has been the key concern of our government. In recent years, frequent initiatives and schemes have been undertaken by the trade & commerce authoriti

What are the Documents Required for IEC Modification?

Undeniably, a unique Import Export Code serves as a gateway to enter into the international market, where you will be able to gain access to a vast platform of lucrative growth opportunities for your business. As a matter of fact, the export promotion has been the key concern of our government. In recent years, frequent initiatives and schemes have been undertaken by the trade & commerce autho

Government Notifies New Duty Drawback Rates 2020

The Government of India has so far always upheld the goal of export promotion in India. The motive of the government has been dependably to help exporters to expand their business globally. In light of a genuine concern for the exporters, the administration has over and again revised the Duty Drawback Rates, countervailing duty rates, and anti-dumping duty rates. The principle goal behind such app

Government to Release Income Tax Refunds up to ₹5 lakh immediately

In the wake of the outbreak of Novel Coronavirus disease aka COVID-19, the Income Tax Department has now decided to immediately release the Income Tax Refunds to the tune of ₹5 lakh right away to the taxpayers. Everyone knows that the world is facing the threat of Novel Coronavirus or COVID-19, which has now been declared a global pandemic. It has caused great economic disruption in India

Fill up the form

GET E-STARTUP INDIA IN YOUR pocket!

Why Choose Us

Serving business owners with an Average 4.8+ Google Rating.

Trusted by Axis bank to cater its clients all licensing & compliance needs.

Providing lending solutions for business needs with NeoGrowth.

Open Neo bank account worldwide & provides cross-border remittance solutions.

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

IN THE MEDIA

CONNECT WITH US

We appreciate your suggestions, write your suggestions here.

• Metals & Electronics ›

Vehicle Manufacturing

Industry-specific and extensively researched technical data (partially from exclusive partnerships). A paid subscription is required for full access.

• Value of automotive parts exports India FY 2009-2023

Value of automotive parts exports from India between financial year 2009 to 2023 (in billion U.S. dollars)

• Immediate access to 1m+ statistics
• Incl. source references
• Download as PNG, PDF, XLS, PPT

Additional Information

Show sources information Show publisher information Use Ask Statista Research Service

August 2023

FY 2009 to FY 2023

India's financial year begins in April and ends in March. For example, FY 2021 started in April 2020 and ended in March 2021. Values have been rounded for clarity. Previous reports have been accessed for historical data.

Other statistics on the topic Automotive industry in India

Vehicles & Road Traffic

• Two-wheeler domestic sales in India FY 2011-2023
• Passenger car market share India 2023, by vendor
• Top selling cars in India in 2023
• Market share of two-wheelers India FY 2023, by leading manufacturers

To download this statistic in XLS format you need a Statista Account

To download this statistic in PNG format you need a Statista Account

To download this statistic in PDF format you need a Statista Account

To download this statistic in PPT format you need a Statista Account

As a Premium user you get access to the detailed source references and background information about this statistic.

As a Premium user you get access to background information and details about the release of this statistic.

As soon as this statistic is updated, you will immediately be notified via e-mail.

… to incorporate the statistic into your presentation at any time.

You need at least a Starter Account to use this feature.

• Immediate access to statistics, forecasts & reports
• Usage and publication rights
• Download in various formats

You only have access to basic statistics. This statistic is not included in your account.

• Instant access  to 1m statistics
• Download  in XLS, PDF & PNG format
• Detailed  references

Business Solutions including all features.

Statistics on " Automotive industry in India "

• Leading car manufacturing countries worldwide 2023
• Number of road transport passengers in India FY 2001-2020
• Number of registered vehicles in India FY 1951-2020
• Automotive sector employment India FY 2013-2019
• Automotive components market size in India FY 2016-2023
• Indian central government road transport tax revenue FY 2010-2019
• Export volume of passenger vehicles from India FY 2015-2023
• Export volume of commercial vehicles India FY 2015-2023
• Export volume of two-wheelers India FY 2015-2023
• Three-wheeler export volume India FY 2015-2023
• Production volume of vehicles India FY 2011-2023, by segment
• Passenger vehicles production volume India FY 2014-2023
• Production volume of M&HCV in India FY 2008-2021
• Production volume of two wheelers India FY 2008-2023
• Production volume of three wheelers India FY 2008-2023
• Passenger vehicles sales volume India FY 2014-2023
• Commercial vehicles sales volume India FY 2012-2023
• Three-wheelers domestic sales volume in India FY 2015-2023
• Commercial vehicle market share India FY 2021-2023, by manufacturer
• Domestic three-wheeler market share India FY 2023, by company
• Sales volume of Maruti Suzuki cars in India 2023, by leading model
• Sales volume of Tata cars in India 2023, by leading model
• Sales volume of Mahindra cars in India 2023, by leading model

Other statistics that may interest you Automotive industry in India

• Basic Statistic Leading car manufacturing countries worldwide 2023
• Premium Statistic Number of road transport passengers in India FY 2001-2020
• Premium Statistic Number of registered vehicles in India FY 1951-2020
• Premium Statistic Automotive sector employment India FY 2013-2019
• Premium Statistic Automotive components market size in India FY 2016-2023
• Premium Statistic Indian central government road transport tax revenue FY 2010-2019
• Premium Statistic Export volume of passenger vehicles from India FY 2015-2023
• Basic Statistic Export volume of commercial vehicles India FY 2015-2023
• Premium Statistic Export volume of two-wheelers India FY 2015-2023
• Premium Statistic Three-wheeler export volume India FY 2015-2023
• Premium Statistic Value of automotive parts exports India FY 2009-2023
• Premium Statistic Production volume of vehicles India FY 2011-2023, by segment
• Premium Statistic Passenger vehicles production volume India FY 2014-2023
• Premium Statistic Production volume of M&HCV in India FY 2008-2021
• Premium Statistic Production volume of two wheelers India FY 2008-2023
• Premium Statistic Production volume of three wheelers India FY 2008-2023
• Premium Statistic Passenger vehicles sales volume India FY 2014-2023
• Premium Statistic Commercial vehicles sales volume India FY 2012-2023
• Premium Statistic Two-wheeler domestic sales in India FY 2011-2023
• Premium Statistic Three-wheelers domestic sales volume in India FY 2015-2023
• Premium Statistic Top selling cars in India in 2023
• Premium Statistic Passenger car market share India 2023, by vendor
• Premium Statistic Commercial vehicle market share India FY 2021-2023, by manufacturer
• Premium Statistic Market share of two-wheelers India FY 2023, by leading manufacturers
• Premium Statistic Domestic three-wheeler market share India FY 2023, by company
• Basic Statistic Sales volume of Maruti Suzuki cars in India 2023, by leading model
• Basic Statistic Sales volume of Tata cars in India 2023, by leading model
• Basic Statistic Sales volume of Mahindra cars in India 2023, by leading model

Further related statistics

• Premium Statistic Colombia: auto parts industry sales revenue 2010-2018
• Premium Statistic Canadian automotive industry - exports to Mexico by product 2014
• Premium Statistic Colombia: auto parts industry sales revenue by month 2018
• Premium Statistic Canadian automotive industry - exports by territory 2020
• Premium Statistic Canadian auto parts imports from the United States by type 2014
• Premium Statistic Canadian automotive industry - exports by product 2014
• Premium Statistic Canadian auto parts imports from Mexico by type 2014
• Premium Statistic Canadian auto parts imports from China by type 2014
• Premium Statistic Automotive parts market size India FY 2008-2022
• Premium Statistic Canadian automotive industry - imports by product 2014
• Premium Statistic Brazil: auto parts industry investments 2010-2020
• Premium Statistic Brazil: auto parts industry investments 2010-2019, as share of revenue
• Premium Statistic Valeo: total sales from 2012-2017
• Premium Statistic Sales value of Rieter 2012-2017
• Premium Statistic Market value of vehicle spare parts in the Middle East by region 2015-2020
• Premium Statistic Share of used tire or end-of-life tire generation in Australia 2020, by vehicle type
• Premium Statistic Autobacs Seven's net sales FY 2023, by segment
• Premium Statistic ROE of the vehicle parts and accessories manufacturing industry in Italy 2017-2021
• Premium Statistic Brose Fahrzeugteile: number of employees made in 2008-2018
• Premium Statistic Italy: top ten destinations of automotive components exports 2016

Further Content: You might find this interesting as well

• Colombia: auto parts industry sales revenue 2010-2018
• Canadian automotive industry - exports to Mexico by product 2014
• Colombia: auto parts industry sales revenue by month 2018
• Canadian automotive industry - exports by territory 2020
• Canadian auto parts imports from the United States by type 2014
• Canadian automotive industry - exports by product 2014
• Canadian auto parts imports from Mexico by type 2014
• Canadian auto parts imports from China by type 2014
• Automotive parts market size India FY 2008-2022
• Canadian automotive industry - imports by product 2014
• Brazil: auto parts industry investments 2010-2020
• Brazil: auto parts industry investments 2010-2019, as share of revenue
• Valeo: total sales from 2012-2017
• Sales value of Rieter 2012-2017
• Market value of vehicle spare parts in the Middle East by region 2015-2020
• Share of used tire or end-of-life tire generation in Australia 2020, by vehicle type
• Autobacs Seven's net sales FY 2023, by segment
• ROE of the vehicle parts and accessories manufacturing industry in Italy 2017-2021
• Brose Fahrzeugteile: number of employees made in 2008-2018
• Italy: top ten destinations of automotive components exports 2016

• eCommerce strategy
• Technology Consulting
• Experience Design
• Conversion optimization
• Marketing strategy
• Live Nation case study
• Men’s Wearhouse case study
• Auto sprate parts store
• CRO for marketplace
• Sales and warehousing prediction
• Marketplaces
• Online Grocery

Grow your eCommerce business

Digital commerce website owners may find it challenging to effectively grow their online store. Oftentimes owners hope that the target audience will somehow find their business naturally. The other reason is simply not having any growth plans. So businesses are likely to end up with an ever-changing list of tactics hoping that something will eventually work out.

Utilizing various tactics without having a plan and waiting for a miracle to happen is a definite recipe for failure. To avoid this, you need to understand what steps to take, at what stages to implement changes, and what the expected results should be.

Below you can find an overview of customer acquisition and retention tactics. It was devised to aid you in writing a checklist of the most important things to have in mind when creating a roadmap for scaling your eCommerce business.

90% of product owners admit making bad decisions because of their inability to make sense out of their data in relation to their goals!

The ultimate objective for your business is to set the right goals and choose meaningful metrics to track. For example, you want to grow your website’s traffic by 50% by the end of the next year. Accordingly, the metrics to track this should include: the number of daily visitors, most valuable traffic sources, context and display ads performance, and YouTube channel views. Other online stores may choose to focus on growing sales as the most valuable strategy. In this case, they need to monitor their daily sales, conversion rates, and site traffic.

These are the three basic steps you need to take to improve your eCommerce business:

– Understand what business areas need to be improved

– State relevant and attainable goals

– Develop a set of metrics correlating with those goals

Keeping in mind that KPIs should vary based on the overall goals, we can consider the corresponding set of metrics and indicators:

• Daily/Monthly/Yearly sales volumes
• Average order size
• Average margin
• Cost of goods sold
• Bundle sales vs. individual product sales
• Number of site visitors
• Chat sessions initiated
• Conversion rates
• Customer acquisition cost
• Number of product reviews
• Emails received
• Phone calls per day
• Average goods/services delivery time

By having these key metrics rack OrbitLift can crunch your data to find the best opportunities to grow your revenues

Even in case you have a unique product (which is rare in most cases), it doesn’t mean that you will grow effortlessly. In the early stages of an eCommerce business, you need to make sure that your store experiences regular month on month growth. Although most acquisition strategies are largely dependent on the type of your store and industry, there are several key online acquisition tactics that you can generally use.:

An integral part of your plan should be centered on organic search. And basically to drive organic online search you need to have a compelling website content and proper descriptions. Be ready to dedicate an appropriate amount of time to build your online presence through external links.

The key to success is creating high-quality content for your website, blog or external media outlets. Quality content means something your audience finds valuable enough to stop, read and share with their peers. Only by establishing proper relations with your audience you can acquire engaged visitors and eventually convert them into customers.

Pay-per-click ads are a major source of online user acquisition. These are Google context ads, Facebook, and others. Each platform has its advantages and special tactics, so you should have a specific plan for each of them that includes launch, management, and optimization.

Having an extensive database of prospective customer emails is an easy way to generate the first batch of sales and start building your brand. Your strategy should be focused on delivering useful and valuable content, not just product offers. The thing is that once someone subscribes, you have more chances to turn him into a customer.

Social media like Facebook and Instagram can be the best sources to find and engage the right audience. To make it work, you may need to ensure that you have a product/market fit. You should know your buyers’ persona to effectively use targeting options and find valuable users without wasting your marketing budget.

In your early development stage having an aggressive digital PR campaign is important to develop awareness of the new online store among opinion leaders. When you find clusters of your audience – whether these are forums, podcasts, review websites — you want to build a relationship with them. You can tell them your story of who you are and why you are passionate about your new venture. Or, for example, if you have physical products, you can offer them samples to review.

As a smart online store owner, you would want to target the locations with your target shoppers. Amazon, eBay, Etsy and other large sites offer unique chances to reach millions of dedicated customers. So if you have your own products, don’t forget to use these opportunities to grow. You can also consider using special discounts and offers to encourage users’ visiting your personal online store.

When you have enough visitors at your online store, the next critical issue is to convince them to make purchases. The art of doing so is called “conversion optimization.” It's more of an art than science. These are the main things to remember when mastering CRO (conversion rates optimization)

The purchase decision is rarely about the price. It’s more about your prospective audience trusting your site. Include “safe shopping” badges, dedicate a special area for customer reviews, show that your store is equipped with latest secure payment systems. All of this helps when building up trust.

One of the most simple and common mistakes is not to improve the site load speed. If it’s too heavy loaded with images and video content, it loads slowly (especially on mobile). It means you lose your revenue. Lack of properly done navigation is another common reason. People expect products to be placed in logical and predictable order so that it’s convenient to browse through the store. Improving UX and site navigation, in particular, can have a dramatic effect on your bottom line.

There are a number of reasons why your visitors can abandon their shopping cart: due to the complexity of the process because they run out of time, have payment issues, or because of high delivery costs (if they find out about them only in cart). That’s why user behavior analytics and remarketing is so important and has to be in place to make sure you return as much of your audience to the shopping cart as possible.

Once you’ve dedicated a lot of work to get the target audience to visit your website and make purchases, you need to turn this audience into loyal customers. It’s a well-established fact that it’s much more cost effective to keep your current customers happy and encourage their repeated business than to find and convert new ones. Hereby are some tips for retaining your shoppers and converting them into loyal clients.

Dedicate your time and efforts to make sure your customer support is client-focused, fast and friendly. Make sure your personnel knows how to treat impolite customers and be patient with the pickiest clients. It sometimes can be a cause of serious frustration to lose an important and valuable customer due to a single negative customer experience.

A loyalty program should actually stand up to its name: an actionable plan aimed at keeping your customers engaged and motivated to continue purchasing from your store. These programs may encompass a lot of things including sampling, different kinds of special offers and incentives. Starting from very basic offers such as promotional coupons the program can then be transformed into a more sophisticated structure that is based on personalized offers.

One of the most effective ways to manage one-on-one customer communication is to check in with your customer in several days after they make a purchase with your store. This allows you to get a real understanding of how they feel about the purchasing process and evaluate their experiences. On a more sophisticated level, when your store has personalization capabilities you can create special content based on existing behavioral data and customer purchasing history. This is one of the things that make businesses such as Amazon successful.

As the face of online retail changes so rapidly it’s vital to keep a close eye on the eCommerce trends and plan your growth strategy accordingly:

OrbitLift believes that mobile is a well-established channel for retail transactions, considering the fact that the mobile devices are in the center of connected consumer’s world. In 2015 nearly four in ten transactions happened across mobile devices while top retailers saw double figure growth in mobile transactions last year when compared to the year-on-year average.

The ever-changing face of digital commerce is influencing how businesses approach consumers. With maturing of eCommerce and proliferation of social media, there’s been a major push towards the so-called “social commerce,” where retailers and social networks are partnering to offer consumers an improved engagement and convenient online shopping experience. In the early days of social media, it was enough to just have your social profile and make updates on Facebook. And now companies must create an engaging experience enriched with product video, online streaming, interactive reviews and comparison charts.

With the advance of technology, personalization has become more affordable and available not only for the largest retailers but for the small ones as well. While some online stores allow customers to design entirely unique products by giving a blank template to create on, others provide a predefined design that customers can change by using features like text, fonts, and colors. With so many ways to implement a personalized approach, it’s an effective strategy to make sure you differentiate from your competitors, effectively engage users and create a unique product niche.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Auto Parts Store Business Plan

Start your own auto parts store business plan

Southeast Racing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.

The Market Southeast Racing Parts will be participating in an exciting, growing market. Motorsports has seen explosive growth in the USA in the last decade. It is now the fastest-growing sport in the USA. The market is worth $1.5 billion annually. A recent survey indicates that over 385,000 people have competed in organized motorsport events with even more people who have “souped” up their cars but have yet to compete in organized events. Additionally, TV coverage for motorsports has increased dramatically helping fuel growth. Lastly, the Carolinas has experienced record population growth, 25% within the last decade making SRP’s chosen location attractive.

The Organization Southeast Racing Parts is founded on the idea that maintaining satisfied customers is essential to the financial health of the organization. With this in mind, SRP will be working hard to ensure that all of their customer’s expectations are exceeded in all transactions. To maintain a presence within the racing community and close relationships to customers, Southeast Racing Parts will be an active member of the local racing scene through participation and sponsorship.

Products, Services, and Delivery SRP will be both a brick and mortar company serving the local community as well as offering a catalog with a mail order service. The catalog will be a four-color edition and subsequent editions will be analyzed to determine the cost effectiveness of publishing in this format. SRP will offer engine and chassis parts for a wide variety of cars. Safety equipment and set up equipment will also be offered. All of the popular name brands will be offered in addition to an array of generic label parts. SRP will offer coil rating services as well as scaling services for race cars.

Financials Southeast Racing Parts will be profitable from month one. Margins are forecasted to be respectable. Year one sales will be exceptional with a steady growth rate for the first five years.

Southeast Racing Parts is an exciting opportunity that combines a customer-centric organization with an explosive industry. Motorsports is becoming increasingly popular in the United States with more and more people becoming active participants. Even for those who are not true participants, it is now “cool” to have your car “tweaked out” even just for aesthetics. An investment in Southeast Racing Parts is a high growth, reasonable risk opportunity.

1.1 Objectives

• To make Southeast Racing Parts the number one destination for the purchase of entry-level/novice racing supplies in the Carolinas.
• To achieve a modest initial gross profit margin, increasing that by at least 1% per year until reaching our final target.
• To sell a substantial amount of product the first year.
• To maintain a solid growth rate per year for the first five years.

1.2 Mission

Southeast Racing Parts is dedicated to providing racing products that combine quality performance with value pricing. We wish to establish a successful partnership with our customers, our employees, and our suppliers that respects the interests and goals of each party.

Constantly striving to supply what the consumer is asking for, we will continually review what is available in the marketplace, and what isn’t. Improving on what is available and providing new products and services to the areas of need will help ensure our success in a market driven by consumer demand.

Success will ultimately be measured by our customers choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and selection.

1.3 Keys to Success

To succeed in this business, we must:

• Be an active member of the racing community; i.e., attend functions at local race tracks, attend regional and national trade shows.
• Deliver our products promptly.
• Work with our customers on a personal level, as opposed to the “What’s your customer number?” mentality of large mail order firms.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Southeast Racing Parts is a new company, which upon commencement of operations will provide entry-level oval track racers with affordable products and quality service.

2.1 Company Ownership

Southeast Racing Parts is a North Carolina corporation, subchapter S, owned entirely by Tim and Molly Jones.

2.2 Start-up Summary

Our start-up costs are listed on the following page. Major costs include computer hardware, software and setup support; rent, a telephone system, approximately office equipment and furniture, parts shelving and other warehouse equipment, leasehold improvements, and a company pick-up truck.

The company will start out with about three months’ inventory on hand. This means the majority of company assets will consist of inventory and the starting cash balance will not be significant.

You will find that we will need additional funding. The purpose of this plan is to secure financing for that amount.

Later in this plan, when you view the Projected Balance Sheet, Projected Cash Flow and the Projected Profit and Loss, you will notice that we do not show any debt or interest expense. However, by examining these same charts, you will see that we project a sufficient amount of earnings to service a debt load.

Upon negotiations of debt amount and terms, modified charts will be provided upon request.

2.3 Company Locations and Facilities

Southeast Racing Parts will be located at 123 Main Street, Anytown, North Carolina. This location will afford us good visibility along with convenient access for traveling race teams wishing to stop at our location.

Another advantage of this location is the recent announcement of a go-kart/entertainment complex, which will be located directly across the street. This complex will attract many potential customers to our immediate vicinity.

By locating in close proximity to Charlotte, Southeast Racing Parts will enjoy a large built-in customer base. The skyrocketing popularity of NASCAR Winston Cup racing in the last 15 years has only strengthened its role as the hub for most race teams and all the related businesses they’ve spawned.

The sport’s explosion has been so boundless that University of North Carolina-Charlotte researchers conducted a study of the industry to try to determine its impact. The study, completed in December 1996, found that in its surrounding counties, NASCAR racing is responsible for about 2,000 jobs producing more than $200 million in expenditures annually — figures that many in the industry consider conservative in 1998. Many of the people employed within the industry along with their children, other relatives, and friends, take up racing as a hobby.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

The Facility We will initially be leasing 3,000 sq. ft. of a new 10,000 sq. ft. building. As needs dictate, our office and/or warehouse facilities could be expanded into an additional 2,500 sq. ft.

We will be sharing this facility with another business that is also involved in racing, and their business attracts many of the local racers. In light of this, we will meet many potential customers simply because of our association with them.

This location will consist of a showroom, office space, and warehousing. All deliveries and shipments will be serviced at this location. We will also have ample parking available.

Southeast Racing Parts will sell racing products to the entry-level/novice racer. These products will include engine and chassis parts along with safety and set-up equipment. Services that we will provide include coil spring rating, along with a scaling service for race cars.

3.1 Product Description

Southeast Racing Parts will assist its customers in selecting the best parts for their application at a price that meets or exceeds their expectations. In the event of a problem, we will be there to assist and counsel the customer to a speedy solution.

We will carry or have quick access to most major lines of racing equipment. We will also carry generic “plain label” merchandise that we will market under our own performance name. Private labeling will allow us, in most cases, to greatly increase our profit margins since the procurement costs are much lower for these types of items.

Even though our target market is the entry-level racer, our product mix will be sufficient to fill most of the needs of even the most hard-core racer. With leisure time at a premium, our reputation for having needed items in-stock will save our customers both time and money. We will be open Monday through Saturday with hours yet to be determined.

Our experience has shown that most entry-level racers’ preference is for low prices. We believe we can offer products that indeed are lower in price without sacrificing the performance and safety concerns that our customers will demand. Southeast Racing Parts will provide precisely the level of service that today’s entry-level racer requires.

3.2 Competitive Comparison

Within our niche, we only have one significant competitor. They, however, do not carry engine parts, which should give us an edge in that respect.

In general, however, our competition is not in our targeted portion of the market. This competition consists mainly of these three groups:

• NASCAR Winston Cup suppliers.
• Asphalt late model chassis builders.
• National mail order suppliers.

More discussion is included later in this plan on competitive businesses.

3.3 Sales Literature

To drive sales initially, Southeast Racing Parts will utilize an existing supply catalog. This four-color catalog will have a different cover with the Southeast Racing Parts logo, phone number, etc., printed on it.

After much research, we found that the product mix in this catalog most closely resembles the needs of the consumer niche that we are focusing upon. An agreement was reached to supply these catalogs to us at no charge. This precludes the need to invest in catalog production at the outset. In turn, we will be using the catalog company as a supplier for some of the inventory lines that we carry. We have developed a price sheet to be enclosed with each catalog.

We will produce flyers in-house on an as-needed basis. These will primarily be to showcase new products and/or to advertise special sales promotions. The flyers will be distributed in the same fashion as the catalogs.

Following are planned means of catalog distribution:

• Give away in-store.
• Enclose in mail order shipments.
• Personally hand out at area race tracks.
• Distribute at local trade shows and auctions.
• Sell for $3 through local racing newspaper business card advertisements.
• Upon the release of a new catalog, we would need to check into the financial feasibility of utilizing direct mail as a means of bulk distribution.

3.4 Sourcing

This is an area that we feel we will enjoy a distinct advantage over much of our competition. Because of our past work experience in purchasing, we have a vast number of supplier contacts within the racing industry. We have good, long-term, solid relationships with many of these vendors which, in many cases, will allow us to achieve decreased cost-of-goods and/or additional terms. Many of these suppliers have already committed to special deals for us, such as waiving their buy-in requirements, additional payment terms, sales referrals, etc.

We will purchase our inventory from both regional wholesalers and direct from the manufacturers. We will use the regional wholesalers more initially because of their ability to service us faster. This will lower our margins slightly; however, we feel that the upside will be that it will allow us to turn our inventory faster. As our sales volume increases, we will shift our buying patterns away from the wholesalers and purchase more of our inventory direct, which will result in increased profits.

3.5 Technology

All computer hardware and software systems that will be utilized by Southeast Racing Parts have been carefully and diligently evaluated. We will use off-the-shelf, PC-based software for accounting purposes including AR/AP, inventory, purchasing, sales, and returns. We will start out with three workstations and expand upon that as necessary.

Many of the computer systems used in the racing industry today are outmoded and obsolete. The major suppliers are reluctant to change because of the huge capital expense to change over their systems at one time. Hence, they keep going with the old and outdated.

By choosing this software, our training costs will be reduced tremendously. Much of the software used by competitors takes weeks to learn and master. Southeast Racing Parts’s use of this software will enable a basic, computer-literate employee to learn the system in one day.

This system will speed our order entry process, assist us in sales forecasting, and allow us to give a higher level of customer service.

3.6 Future Products

We must remain on top of new products and trends. The most important factor in developing future products is market need. Our understanding of the needs in our market niche is one of our competitive advantages.

As stated earlier, we will have our own private label brand. Not only are profit margins better than name brands, but these accessories will help build name identity and awareness for Southeast Racing Parts when they are used on the race track. As our sales volume increases, this will be an area that we can expand.

Another natural area for expansion in the future would be the implementation of a website. On-line commerce is becoming an increasingly attractive option, due to relatively low cost of operation, the global reach of the medium, and the increasing security. Our business model could quite easily expand to include a form of Internet commerce in a variety of racing equipment.

Market Analysis Summary how to do a market analysis for your business plan.">

Overall it is estimated that the total retail market for hardcore racing products is $1.5 billion annually and it still continues to grow.

The only real threat to our venture would be a similar new entry to the marketplace. This opportunity may best be described as one ready and waiting for the first entrant who arrives with a well-conceived plan, sufficient industry experience, and the required capitalization.

4.1 Market Segmentation

The racing industry is in a boom period. While there are many items from various vendors available, Southeast Racing Parts has approached the market as a specialty retailer — a provider of parts and services to the entry-level racer.

Our target customer in this segment will have a wide range of racing and automotive skills, but our most important target customers are relatively unsophisticated at racing. We will be able to serve this customer well not only by offering them parts at an affordable price, but also by giving them advice that ensures they get the task done correctly, therefore improving their on-track performance.

4.2 Target Market Segment Strategy

Our segment definition is in and of itself strategic. We are not intending to satisfy all users of racing equipment, but rather those who are just starting out and those who are struggling to keep up. We can save our customers time and money, not so much within our pricing structure, but by assessing their needs and directing them toward the proper product. Racers, by nature, tend to desire a high-end product, when often a low to mid-end product will do as good as, or sometimes even a better job. By always dealing in an honest and ethical manner, we will build customer loyalty and word-of-mouth sales that many of our competitors are lacking.

4.2.1 Market Trends

Trends are in our favor. We have identified four major trends that help us:

• Motorsports in general, and circle track racing in particular, have experienced explosive growth in the ’90s. Most experts attribute this growth to greatly expanded television coverage of motorsports events. This coverage exposes many more potential participants to the sport. By focusing on affordable entry-level racing, we feel that Southeast Racing Parts will be filling a niche in the market.
• This area has experienced tremendous population growth in the past decade, approximately 25%. As racing and the local population grow hand-in-hand, it should make many more potential customers available to us.
• There are a lot of fathers dreaming their son will be the next Jeff Gordon. In fact, there are tens of thousands of serious young kart racers who have chosen this sport over baseball, football, or basketball. They’ll be the ones that fill the fields in the next decade.
• Finally, there is the aging Baby Boomer generation. Many have discharged their duties to their children, who have grown and moved on, and now there is money and time again. They turn to something they always wanted to do, or return to the sport they loved, and they go racing.

4.2.2 Market Needs

Since our target market is the entry-level racer, the most important needs are service, price, and availability, in that order. One of the key points of our strategy is to focus on target segments that know and understand these needs and are willing for us to fulfill those needs.

4.3 Industry Analysis

With expanded television coverage and an enormous base of grassroots motorsports activity, auto racing is a thriving industry, as well as the fastest growing sport in America. As with baseball, it could be argued that auto racing has grown to such popularity because of its vital grassroots foundation. Our customers will be the Little Leagues and softball leagues of auto racing. Outsiders to the racing industry must understand that racers may be the most obsessive consumers of any industry. Because of the pressure to win, they avidly purchase new technology. In most race cars, several parts will become obsolete in the course of a season, even though they function perfectly well.

Racers are hard on their investment, too. New tires might be a weekly purchase, and several engine freshening expenditures might be called for in a season. A good whack at the outside wall, and a racing retailer has a customer or two for shocks, a-arms, fasteners, hubs, and more.

Racers spend what it takes to win; they are not out merely to enjoy the ride. Any person who has spent any time at all in the racing pit has heard the guy in front of him in the snack bar line describe how he postponed a key household expense–the telephone bill or a new household appliance–to purchase a new right rear tire, or other critical racing part.

To service this sport, there are thousands of small businesses across the country skilled in the ways of horsepower and hooking it to the ground. Whether they make their money from parts or services, retailing or building engines, these businesses make it an easy and convenient matter to go racing. Without these local ambassadors of speed, it is hard to imagine the existence of auto racing in a large scale.

4.3.1 Distribution Patterns

Generally, traditional distribution channels are followed. The products are bought from distributors and/or direct from the manufacturers, who have little say in how products are marketed. As in most industries, price levels decrease as volume increases.

4.3.2 Competition and Buying Patterns

We feel that racers understand the concept of service and availability, and are much more likely to pay for it when the offering is clearly stated.

There is no doubt that we will compete much more against the large mail order outfits than against any small local suppliers. We have good indications that racers/customers would rather pay 5-15% more for a long-term relationship with a vendor providing quality service and support. To this point, the racer thinks about price because that’s what he sees emphasized by the mail order companies.

Availability is of utmost importance. The buyer tends to want immediate, local solutions to their problems and/or needs.

By positioning ourselves at the lower end of the market, we will present ourselves to consumers just getting into racing, and we will sell to a base of customers that we can grow with together.

4.3.3 Main Competitors

• (omitted to protect confidentiality)

The above are all targeted towards the professional (NASCAR Winston Cup, etc.) market. They carry a totally different product mix to service that market. Their prices are high, and their interest in selling to the entry-level market is basically nonexistent.

These are both late model chassis builders not targeting the entry-level market. Basically, they stock inventory that’s used just on their own cars. They are both located in the Anytown Motorsports Center business park which is in an out-of-the-way, hard to find location.

They are a large drag racing mail order firm that is skimming the circle track gravy. Since Southeast Racing Parts will cater to the circle track market, we believe that whatever local circle track customers they have will switch suppliers. We will have more knowledge and experience to suit their needs.

As implied in their name, they sell used parts, so in most cases they’re not usable for our target market. They also sell a limited amount of new parts; however, because of their name, most people are not aware of this. Also, they are located in an area which was described earlier as a poor location.

They are the only local competitor that we could identify that was targeting our niche. Following are what we feel are some of our competitive advantages: We feel that we are in a much better location. They utilize a black and white flyer as their main sales tool, and we will have a professional four-color catalog. Also, they concentrate mainly on chassis and safety equipment, where we will also offer a full array of engine parts.

4.3.4 Industry Participants

We are part of the Performance Racing Industry, which includes several kinds of businesses.

Speed Shops : Most of these are small, sometimes part-time ventures run from the individual’s home. Sometimes they will service a local race track; however, they usually carry a very minimal amount of inventory, and are usually operated by a racer or an ex-racer depending solely upon a small circle of friends or acquaintances as customers. They normally are short on business and marketing skills.

Engine & Chassis Builders : Typically these are well-respected firms supplying engines and chassis to the racing industry. Their customer profile lies in the mid to upper end of the market. They offer superb technical support; however, it is only available to customers utilizing their engine or chassis. They stock parts to service their engine or chassis, but are usually limited in areas areas beyond that. Normally their pricing structure is slightly above average.

Mail Order : The racing industry is served increasingly by large mail order firms that offer aggressive pricing on racing components. They are usually impersonal, and have little or no technical support available. For the purely price-driven buyer who purchases parts and expects no support, these firms offer a good option.

Others : There are many other channels through which people buy their racing parts, usually variations of the main three types above.

Strategy and Implementation Summary

Our strategy is based on serving the niche of entry-level racers well. This area is full of small race teams that can’t get products or services from the major vendors who focus only on professional race teams. Also:

• What begins as a customized version of a standard product, tailored to the needs of local racers, can eventually become a niche product that will fill the needs of similar racers across the country.
• We are planning our marketing strategy so that we can eventually reach specific kinds of racers across broad geographic lines.
• We focus on satisfying the needs of entry-level race teams.
• We focus on follow-on technology that we can take to the masses, as opposed to leading edge technology that aims at the professional race teams.

5.1 Marketing Strategy

The retail marketing strategy of Southeast Racing Parts centers on creating a corporate identity that clearly defines our market niche in terms that benefit our customer. Other specific strategies that will be used follow:

• Print Ads – Keeping the Southeast Racing Parts name in front of the customer while getting established will be necessary. We plan on running limited space ads in the local racing newspapers to keep our name and phone number in front of the consumer. We may attempt to showcase a single product in an effort to return revenue from the ad. Our past experience has been that showing measurable revenue from these types of ads is difficult. In the future we plan on utilizing Stock Car Racing magazine and Circle Track magazine (both national magazines) as a method of increasing our sales revenue.
• Press Releases – The local racing papers: The Racing News, Late Model Digest, Dirt Late Model Digest, and The Pit List have offered to run releases and/or stories concerning the opening of Southeast Racing Parts. Stock Car Racing magazine has also extended us the same offer. We will also use the above media to run new product releases.
• Race Car Sponsorship – Entry-level racers can be persuaded into running the Southeast Racing Parts logo on their race car in exchange for a token discount on purchases and/or for receiving technical support.
• Decals – We will have decals manufactured with the Southeast Racing Parts logo. We will include the decals with all of the orders that we ship. Entry-level racers in particular enjoy displaying decals on their race cars, haulers, tool boxes, etc.
• Apparel – We know several people in the area who produce NASCAR apparel. A line of premium Southeast Racing Parts apparel could be designed and produced in very short runs to reduce inventory costs. These can be sold or given away with qualifying purchases to further expose the Southeast Racing Parts name.
• Grand Opening – A Grand Opening is the most successful of any in-store promotions. With manufacturer support, a large number of door prizes can be given away while instantly building a mailing list. Loss leader pricing on a few high volume consumable products will attract in-store traffic. Vendors will subsidize loss leader pricing with a rebate or kickback. Appearances by local racing celebrities would also expose potential customers to Southeast Racing Parts.
• Trade Shows – We will exhibit at approximately four local trade shows annually. Revenue that we produce at the shows will outweigh our expenses for attending.
• Word of Mouth – By giving first-time customers great service and a fair price, the word is sure to spread. Also, the many industry and racer contacts that we already have in the area will prove to be most beneficial in spreading the word.

All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be conducted on an on-going basis with careful considerations of returns generated.

5.1.1 Promotion Strategy

Our most important vehicle for sales promotion will be our catalog, which is discussed earlier in this plan.

5.1.2 Distribution Strategy

Our customers will buy our products at our location. However, we anticipate a significant amount of mail order sales in order to meet or exceed our Sales Forecast. We will receive orders by mail, phone, or fax, process them immediately, and ship the goods via United Parcel Service.

In the event we are out of an item or we don’t stock it, many of our vendors have offered drop shipping as a service to us. This will allow us to keep our service at a high level, yet let us keep our inventory levels in check.

In the future, electronic commerce with a secure website will be thoroughly investigated for feasibility.

5.1.3 Pricing Strategy

Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be a good value to the racers. However, in the nearly thirty years of experience that we have accumulated in the racing industry, one message rings true: someone can always beat you on price.

Therefore, our pricing strategy is to be competitive within the various product categories, but not to rely on the selling price to overshadow the other advantages of doing business with our company. We will sell ourselves on the basis of a diverse line of quality products, that are readily available, reasonably priced, and backed up by our extraordinary customer service. The products will be checked prior to shipment and all promised shipping dates will be met.

We will strive for a modest gross profit margin, increasing that steadily by year four.

5.2 Sales Strategy

Because Southeast Racing Parts is a new entity, we understand that we will have to prove our company’s worth to racers in order to earn their respect and business.

Most importantly, we need to sell our company, not necessarily the products. We will need to push our service and support capabilities.

5.2.1 Sales Forecast

The following table and related charts show our present sales forecast. We are projecting sales to grow at steadily for the next three years.

Our seasonality, as shown in the chart, is a factor in the racing industry. We will tend to sell much better in the period January through June, while sales trail off in late summer and fall.

Management feels these forecasts are highly attainable.

When Performance Racing Industry completed its annual survey, the resulting figure for total number of racers was 385,000. Within the survey they also found that 150,000 of those were oval track racers. The survey also showed $1.5 billion in annual retail sales for all segments, with 48% of that total ($720 million) derived from the oval track segment.

By dividing that number ($720 million) by the number of oval track racers (150,000), the average annual retail purchases of oval track racers equals $4,800. From our past experience, we believe that each customer we have would spend on average 25% of that figure ($1,200) with our company. Finally, by dividing our first year sales forecast ($350,000) by $1,200 (average annual customer purchases), it shows that we will need 292 customers to support the sales forecast numbers. We believe, by and large, that these are realistic and attainable numbers.

5.3 Strategic Alliances

We have the ability to build strong strategic alliances with many of our suppliers, some of which are listed below.

• (omitted to protect confidentiality). They will set us up as a Warehouse Distributor (W.D.) without the buy-in requirement.
• (omitted to protect confidentiality). They will do “whatever they can” to help us succeed. Possibly supply us with a show car to display in our showroom.
• (omitted to protect confidentiality). They will set us up as a W.D. without the buy-in requirement.
• (omitted to protect confidentiality). They will set us up as a W.D. and could also be persuaded into extending us special terms.
• (omitted to protect confidentiality). They will set us up as a W.D. and help out as needed with additional terms.
• (omitted to protect confidentiality). They have set us up as a dealer and will drop ship when needed.
• (omitted to protect confidentiality). They will work with us by drop shipping direct to our customers and also by acting as a “paper” warehouse so that we may order direct from the manufacturer for a nominal billing fee.
• (omitted to protect confidentiality). Could be persuaded into giving us extended dating on our initial stocking order.
• (omitted to protect confidentiality). They will supply us with used testing equipment at no charge. They have indicated that they would also extend special terms and/or dating on initial stocking order.
• (omitted to protect confidentiality). They will supply us with their 94-page 4-color catalog at no charge.
• (omitted to protect confidentiality). They will set us up as a direct W.D. without the buy-in requirement. Will also assist us in marketing their products in this area.

The following two local warehouses will help us immensely in keeping our own inventory levels in check, while still giving our customers fast service:

• (omitted to protect confidentiality).

Approached properly, these vendors and many others will assist Southeast Racing Parts in becoming a force in the marketplace.

5.4 Milestones

Sample Milestones topic text.

The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

We are a small company owned and operated by Tim and Molly Jones, husband and wife, as a Subchapter S corporation.

Tim Jones – President Tim will be the main salesperson. He will also be responsible for shipping and receiving, inventory management, and the marketing and promotion of products. Tim will assist with record keeping and cost containment.

Molly Jones – Corporate Secretary Molly will maintain the company records and be in direct communication with the accountant and other advisors. She will also be in charge of the computer system and perform all of the desktop publishing for the company. She will assist as needed with sales, shipping and receiving, and customer service related issues. In addition to her regular duties, Molly will be doing Internet marketing from her office at Southeast Racing Parts. We anticipate that 20 hours every week will be dedicated to this marketing. The revenue that will be generated by this is reflected in the Sales Forecast.

The initial management team depends on the founders themselves, with little back-up. We plan on hiring additional personnel as the need for them arises, and as we have the ability to pay them.

6.1 Management Team

Tim and Molly not only have the desire to succeed, but will bring a wealth of knowledge and experience to the Southeast Racing Parts team. They have nearly thirty years of combined experience in the racing industry and have both performed nearly all facets of daily operations for a racing business. Following is a synopsis of their abilities and accomplishments:

Tim Jones (40) – President (background omitted to protect confidentiality)

Molly Jones (29) – Corporate Secretary (background omitted to protect confidentiality)

6.2 Management Team Gaps

We depend on professionals, particularly our CPA, for some key management help. We have retained a local CPA to help us with financial and business management questions since we don’t have a strong background in those areas. Also, we are short on experience concerning human resource issues; however, we plan on utilizing our network of business associates to advise us when the need arises.

6.3 Personnel Plan

The cornerstone of the personnel plan is to maximize productivity and minimize the labor burden on the company’s operating expenses. As we grow, we expect to see steady increases in our personnel to match the increases in sales.

Financial Plan investor-ready personnel plan .">

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Recycling today's resources for tomorrow's generations.

Questions? Live Chat!

Interested? Call Us 1-888-525-1301 M-F 8AM - 5PM PST

Home Builders and Developers

Commercial Builders

LEED Recycling

Demolition, Hauling & Recycling Facilities

Latest News

MY GREEN HALO CUSTOMIZED RECYCLING SOLUTIONS

Home Builders, Developers, and Remodelers Tracking your waste and recycling is easy!

Whether you’re a custom home builder, large scale developer, home remodeler, or Sub Contractor Green Halo provides waste and recycling tracking solutions that are inexpensive and easy to use, while saving you time and money. Green Halo allows you to create waste management plans for your projects, auto-generate bid sheets for waste hauling, locate the nearest recycling facilities and hauling vendors, monitor project and sub contractor compliance with municipal recycling requirements, generate comprehensive reports and statistics by project or by entire company for clients and marketing purposes, and see carbon footprint and environmental impacts of your projects. We also build custom applications to track waste and recycling you can integrate into your existing web site, to monitor sub contractor recycling activity and compliance, generate reports and statistics for clients, and promote your company’s social and environmental responsibility.

TURN THIS INTO THIS

We make tracking waste and recycling easy!

Know your project’s recycling status today – where it’s going Get in-depth tools for analyzing your recycling information. Understand your project’s waste flow, view waste trends, and more, so you can move your green business forward.

Manage all your recycling from one place Organize your recycling with Green Halo and get the information you need fast. Check your diversion rates, recycling statistics, and company statistics in an instant.

Export Your Recycling Data to Excel All data and reports can be exported into Microsoft Excel with just one click. Export data from Green Halo and import it into other programs with ease.

Company Snapshot With Green Halo’s comprehensive recycling overview, and easy-to- understand charts, graphs, and summaries, you can view your recycling data in real time – all on one screen.

Free Live Support Friendly, helpful, and ready to answer your questions Call 1-888-525-1301 - M-F 5am - 6pm PT

Mobile Access Access Green Halo with one touch from your iPhone, Blackberry or Droid ready device.

We’ll Buy You A Cup Of Coffee! Schedule a 5 minute web demo to learn more about Green Halo and get a $5 Starbucks Gift Card .

Company Name

Company Website

Email *

Phone *

Request Specific Date *

Best time to call *

Select your time zone *

Comment or special requests

Corporate Office: 521 Charcot Ave, Suite 111, San Jose CA 95131, P. 1.888.525.1301, F. 1.408.943.8115 All Rights Reserved, © 2010 Green Halo Systems Inc.