In this presentation we discuss about How to set up and run the business of automobile usable part.
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1. GOVERNMENT ENGINEERING COLLEGE,
BHARUCH
• SUBJECT: ENTREPRENEURSHIP(2181920)
• GUIDED BY: PROF. U.V.JOSHI & PROF. B.S.PATIL
• PRESENTATION ON : BUSINESS CONCEPT
• MADE BY:
SARDARA KISHAN A.(160140119099)
SHAH VRAJ M.(160140119101)
SHAIKH M. SAKLEN M.(160140119102)
SHAIKH SEHAB M.(160140119103)
SINGH AMIT F.(160140119105)
2. Planning for Your Used Auto Parts
Business
1)Know your market:
Used auto parts businesses usually operate on a local level, with a few
companies providing this service in the form of a regional or national
chain. As such, do some research on your local market to ensure that you
are not wading into an overly-competitive market with many well-
established used auto parts businesses.
• 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.
3. 2)Develop a business and marketing plan
• 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
• 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.
4. 3)Obtain the necessary paperwork
• Make sure you acquire all the required licensing, permits, and insurance
to run a used car parts business in your area. Pay attention to zoning
regulations as well as state and federal guidelines
• Most states require a license for businesses that buy, restore, recycle,
and resell used car parts.
5. 4)Find a suitable location
• Find a location for your used card parts business. As long as you have
quality marketing and advertising strategies, you don't necessarily need
a location that is easy for people to find. People may come looking for
you because of the service you provide is so particular
• You will need a location that is big enough to house and properly
catalogue a variety of used parts for all the makes and models of cars
you cater to.
• 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.
6. 5)Identify supply sources
• 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
7. Running Your Used Auto Parts Business
1)Connect with existing businesses
• Local businesses, such as tow truck companies, junkyards
and insurance companies, can help you find used car parts.
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
8. 2)Buy “scrap” vehicles
• When a car gets totalled, there may be many valuable working parts left
on the vehicle. Sometimes it may be worth it to buy an entire scrap
vehicle so you can get a breakdown of motor and body parts for a
specific make and model.
9. 3)Advertise your business to the public
• Advertise online, on the radio, and in local newspapers. If you can
afford it, consider placing a commercial on a local TV channel.
Use flyers, business cards, and word-of-mouth advertising to
inform people about your business. Run special promotions to
celebrate your grand opening.
10. 4)Establish repeat business
• 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.
11. 5)Manage and monitor your inventory
• The success of your used auto parts business relies on managing your
inventory. If customers don't find what they need at your business,
they will happily shop elsewhere. Staying profitable in the field of
used auto parts requires you keep an extensive selection of parts for a
wide variety of vehicles at all times.
12. 6)Control your cash flow
• Monitor the flow of cash in and out of your business. Make sure you
don't spend more acquiring the parts than you make selling them. Make
sure you account for the other costs your business incurs from day-to-
day operations when pricing your products. Such costs include.
• Paying employees and staff (if necessary)[
• Paying rent or mortgage on your business' property
• Paying bills, like electric, water, and gas, that are necessary to your
business' operations
• Paying property taxes and insurance
• Advertising costs